India has hit back at Donald Trump’s latest tariff threats, calling them unfair and unreasonable, as the US President signalled a steep hike on Indian imports—citing the country’s trade in Russian oil.The Ministry of External Affairs (MEA) defended India’s position, stating that the US itself had encouraged oil imports from Russia post the Ukraine war to stabilise global markets.Ajay Sahai, Director General & CEO of FIEO, expressed uncertainty about the impact on Indian exporters. “We have not been able to quantify how much is the loss, because we are not sure of how much will be the exact duty—he keeps on shifting the goal post,” he said. Sahai stressed that exporters are seeking “clarity and stability,” adding that even a 25% tariff puts India at a disadvantage compared to competitors with lower duties.
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Former Foreign Secretary Shashank pointed to an inconsistency in Trump’s logic. “If India is making the money, then how is that fueling the war?” he asked, questioning how refining and reselling oil could be directly linked to the conflict. He also highlighted the mismatch in negotiation styles, noting that India doesn’t engage in top-level deal-making the way the US might expect.Ambassador Anjali Prasad dismissed the notion of compromise, stating, “We are a sovereign country, just like the US. We don’t have to listen to what President Trump is saying.” She warned that acceding to Trump’s demands on agriculture and dairy would flood India with subsidised US imports, which would be harmful to domestic farmers.Sahai added that nearly $47–48 billion worth of exports are at stake, although some may remain unaffected. He warned of short-term pain but expressed hope for longer-term diversification through FTAs with the UK and EU.With tariffs already at 25% and further hikes imminent, Ambassador Shashank concluded, “We should adhere to our own interest… but be ready to negotiate and find alternative markets.”For the entire discussion, watch the accompanying videoAlso Read | No winners in Trump’s trade war, tariffs hurt US consumers too: Former Citigroup economist
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