Trump's Anger: Why Tariffs Hit India, Not China

India's Stance Against US Tariffs and the Broader Implications

India has made it clear that it is prepared to confront the tariffs imposed by former US President Donald Trump. A South Asia analyst, Michael Kugelman, director of the South Asia Institute at the Wilson Center in the United States, has provided insights into how the ceasefire between India and Pakistan following the Pahalgam terror attack is connected to Washington’s tariff actions.

Kugelman spoke to a news agency after Trump announced an additional 25% tariff on Indian exports, bringing the total tariff burden to 50%. The US President described this as a "penalty" for India’s continued purchase of Russian crude oil. However, New Delhi has consistently argued that its decision to buy Russian oil is driven by the need to ensure energy security for its citizens. The Ministry of External Affairs called the US action "unfair, unjustified, and unreasonable," noting that several other countries, including India's neighbor China, are also purchasing Russian oil.

When asked why China is not facing similar tariffs from Trump, Kugelman offered an explanation. He suggested that China has not taken a stance that challenges Trump’s claims about his role in the India-Pakistan ceasefire. Unlike India, China has not had its leader engage in a lengthy phone conversation with Trump where they dictated what is right or wrong. This, he said, may be why Trump has directed some of his strongest criticism toward India.

Kugelman pointed to Trump’s repeated claims that he brokered the ceasefire between India and Pakistan after New Delhi launched Operation Sindoor to retaliate against the Pahalgam terror attack. Despite these claims, India has maintained that the decision to agree on a ceasefire was made at Pakistan’s request, not due to US intervention. Prime Minister Narendra Modi has stated in Parliament that "no world leader asked India to stop its military operation."

This position effectively undermined Trump’s attempt to take credit for ending the hostilities between the two nations. In contrast, Pakistan has thanked Trump for the US intervention and has been rewarded with a trade deal.

The tensions between India and the US have also led to a pause in ongoing discussions for a trade pact. India has refused to grant greater access to its key sectors, such as agriculture, to protect farmers. After the imposition of Trump’s tariffs, Prime Minister Modi emphasized the importance of farmers’ interests, stating, "The interest of farmers is our top priority. India will never compromise with the interests of its farmers, livestock holders, and fishermen. And I know that I will have to pay a huge price for this personally, but I am ready. India is ready, for the sake of the country's farmers, fishermen and livestock holders."

Kugelman described the current tension between India and the US as the "worst crisis" the bilateral relationship has faced in over two decades. He warned that the situation could have a "damaging impact." However, he also noted that the broader relationship between the two countries can withstand such shocks.

"I think this is the worst crisis that the relationship has faced over the last two decades of strategic partnership... I would argue that there is potential for this relationship to be salvaged, not just because of the natural, shared interests and the strategic convergences, but this is a relationship that is multifaceted and has many different areas of cooperation that play out on parallel tracks and have the insulation to withstand shocks to the broader relationship," he said.

The situation highlights the complex dynamics between India and the US, particularly in the context of trade, geopolitical influence, and regional stability. As both nations navigate these challenges, the long-term implications for their bilateral relationship remain to be seen.