Washington DC, July 31:
President Donald Trump's threat to impose 25 per cent tariffs on India should be seen as a negotiating tactic rather than a fundamental shift in US-India relations, according to former US Assistant Secretary of State Nisha Biswal. Speaking to ANI, Biswal said Trump had indicated he remains "open to negotiations with India" despite his morning announcement threatening tariffs and penalties on Indian goods.

Biswal revealed that US and Indian negotiators had been working "for quite some time, weeks, even months" on a phase one trade deal that was "very, very close" to completion just days ago. "What was left was for there to be some leader-level agreement," she said, suggesting that Trump's tariff threat represents an attempt to push negotiations "across the last mile" rather than abandon talks entirely.

The former diplomat described the potential agreement as "unprecedented," given that the two countries have not had "any kind of trade architecture in place between them over these many decades."

Trump has also criticised India as Russia's largest energy buyer and major arms customer, marking a departure from the Biden administration's more accommodating stance toward India's historic ties with Moscow.

Biswal acknowledged this represents a shift, saying the current president is "probably in less of a mindset to accommodate" India's legacy relationships compared to previous administrations.

"I do think that you are going to see kind of a maximal pressure approach from the president until a deal is reached," she warned. India has indicated it is prepared to retaliate against US tariffs, raising questions about whether New Delhi might pivot toward European or Asian markets to compensate for potential US losses.

However, Biswal urged both sides to avoid "tit for tat" measures while maintaining dialogue. "It is in India's interest to have a trading relationship with its largest trading partner, the United States," she said. "Neither country should be in a position to say, well, we can do without [an] agreement. I think that would be a mistake."

Drawing parallels with Trump's previous trade negotiations, Biswal pointed to his "very tough negotiations with very close allies and partners," including the UK, Japan, and the EU, all of which ultimately reached "a more stable place."
She warned that the situation "could snowball into a much bigger problem" if both countries fail to keep negotiations moving forward, but emphasised that Trump's approach should not be interpreted as "a lack of confidence or a lack of interest in this strategic partnership."

"The temptation in India to react to the president's words [and] say, well, we can't count on the United States, is an understandable one, but an avoidable one," Biswal cautioned.

The former official stressed that both countries have "a long way to go together to be able to outcompete their strategic competition and adversaries," an apparent reference to China.

She urged Indian officials to remember that Trump's tough rhetoric does not preclude "having the deep and strategic relationship" between the two nations, describing his approach as a familiar negotiating pattern rather than a fundamental policy shift.

Earlier today, Trump, taking to Truth Social, announced a 25 per cent tariff on India in addition to a penalty for buying Russian oil. The tariffs will be imposed starting August 1, he further stated.

"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country," Trump stated in his post.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!" the post added.
The trade tensions come at a crucial time for US-India relations, with both countries seeking to strengthen economic ties while managing complex geopolitical challenges in the Indo-Pacific region.

Source: ANI

Trump's 25 per cent tariff threat 'just negotiating tactic', says former US official