US tariffs on India all about extracting more trade concessions, say experts

India’s exports to the US have been hit with steep 50% tariffs after an additional 25% levy came into effect this week, but experts believe the move is less about Russia and more about trade negotiations.Former Indian ambassador Mohan Kumar called Washington’s reasoning “fallacious at best and outrageous at worst,” stressing that India’s Russian oil purchases are driven by energy security needs.“We have 400 to 500 million people who live in energy poverty. Wherever we get cheap oil prices, we simply have to buy,” he said, rejecting claims that Indian refiners are profiteering. Kumar argued that India’s refined petroleum exports have remained consistent and that the tariff move is “pre-negotiation posturing” aimed at ratcheting up pressure.Ashok Malik, Partner and Chair of India Practice at The Asia Group, echoed this view, adding that India is being unfairly singled out despite following international rules. “Why India is being singled out, when we are not breaking any rules but adhering to an internationally determined price cap and importing crude oil from Russia, defeats me. It’s completely preposterous,” he said. Malik pointed out that Europe continues to trade with Russia in natural gas, LNG, and even uranium, while India faces harsher penalties.Both experts linked the tariffs to ongoing trade talks. “The game is really about coercing India to make even greater concessions in trade negotiations with the US. Peter Navarro is the silent trade negotiator for the US. That’s the only way I can interpret this,” Malik said.With more than 60% of India’s exports to the US now facing the highest 50% tariff rate, Kumar warned that the move defies logic. “It is another form of coercion related to our trade negotiations with the US,” he said.Watch accompanying video for entire discussion.
(Edited by : Shoma Bhattacharjee)

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