India and the U.S. are in a high-stakes tug of war over trade, with both sides racing against the clock. 🇮🇳🤝🇺🇸
Washington plans to slap up to 50% extra tariffs on Indian goods because of Delhi's increased purchases of Russian oil. The first 25% hit is already in place, and the next batch is set for August 27.
A key visit by U.S. trade negotiators to New Delhi from August 25 to 29 was suddenly called off, dashing hopes for a last-minute deal. In a surprise move, President Donald Trump announced he will nominate his aide Sergio Gor as the next U.S. ambassador to India and special envoy for South and Central Asian affairs.
Earlier talks collapsed over India's refusal to open up its farms and dairy sectors. Bilateral trade between the world's biggest and fifth-biggest economies tops $190 billion.
Analysts at Capital Economics warn that if all the extra tariffs stick, India's growth could lose 0.8 percentage points this year and next. 📉
Foreign Minister Subrahmanyam Jaishankar called this public trade showdown "unusual," saying oil purchases weren't even on the table in earlier private talks.
With fresh levies looming, India must defend its domestic interests while keeping its relationship with its top trading partner alive. Stay tuned as this economic drama unfolds! 🌏💼🔥
Reference(s):
India says U.S. trade negotiations still ongoing as fresh tariffs loom
cgtn.com
