Deepening trade dispute causes Trump to postpone scheduled visit to India, according to a report.
The United States and India are experiencing a significant downturn in their relationship, with US President Donald Trump cancelling his proposed visit to India this year and imposing tariffs on Indian goods.
The cancellation comes after months of escalating tensions between the two nations, with the collapse of trade talks being attributed to growing mistrust. The total duties for goods imported from India now range from 25% to 50%.
Trump had earlier assured Prime Minister Narendra Modi that he would attend a Quad summit in India later this year, but the visit has now been removed from his schedule. This move is seen as a setback for bilateral ties, with the White House maintaining a "respectful relationship" with India but acknowledging the absence of a US presidential visit as a significant blow.
The tariffs, which were announced by Trump, apply to various goods such as garments, gems and jewellery, footwear, sporting goods, furniture, and chemicals. A punitive 25% tariff was added to Trump's prior 25% tariff on many imports from India.
Meanwhile, Indian officials have expressed displeasure with what they perceive as heavy-handed actions from the US. In response, Prime Minister Modi has been focusing on alternative partnerships, as indicated by his recent meetings with Chinese President Xi Jinping and Russian President Vladimir Putin.
The meetings with Xi Jinping and Putin signal a shift towards balancing ties as relations with the US sour. Modi arrived in China today for meetings with President Xi Jinping, marking another step in this direction.
Tensions between Trump and Modi deepened after a June phone call, with the cancellation of a US trade official's visit to New Delhi scheduled from August 25 to 29 being another indication of the strained relationship. The US politician linked to the trade negotiators under the administration of President Trump who recently planned to visit India but cancelled the trip for unclear reasons also contributed to the tense atmosphere.
Despite the tensions, Modi denied any American mediation in the ceasefire between India and Pakistan, emphasizing India's commitment to maintaining peace in the region. However, the absence of a US presidential visit is widely viewed as a setback for bilateral ties at a time when both nations face crucial economic and security challenges.
