United States urges Europe to implement further tariffs on India

In recent weeks, there have been significant developments in the trade and energy relations between India, the United States, and Russia.

On August 20, the imposition of additional tariffs on Indian imports of Russian oil was avoided, marking a reprieve for India's energy supplies. This decision came amidst ongoing discussions between the two nations regarding joint projects for energy extraction, particularly in the Arctic shelf, as expressed by both Russia and India.

Meanwhile, on August 23, Subrahmanyam Jaishankar, the head of India's Ministry of External Affairs, stated that trade negotiations with the US were progressing. However, the Ministry of External Affairs also considered the US actions unjustified, reflecting a somewhat complex dynamic in the India-US trade relations.

On the same day, the US administration urged Europe to impose additional tariffs on Indian goods, similar to those imposed by the US. This request was met with no immediate action from the EU.

However, on August 27, a 25% tariff was imposed on Indian imports of Russian oil, raising the overall rate for India to 50%. This move was followed by an additional 25% tariff on Indian goods, increasing the overall rate to 50% as well. The Kremlin has since stated that this pressure from the US is effectively a threat.

Despite these tensions, Russia is considering possibilities for liquefied natural gas (LNG) supplies to India, potentially providing a new avenue for energy cooperation between the two nations.

The US is also urging the EU to halt all oil and gas supplies from New Delhi, a request that has not been met with immediate action. The official U.S. negotiation partner for trade talks with India is the U.S. Trade Representative office, while India is represented by its Ministry of Commerce or appointed government trade officials.

Notably, US Secretary of the Treasury, Scott Bessent, has expressed confidence that both sides would reach an agreement. However, as of now, US Secretary of the Treasury, Scott Bessent, has not expressed any new statements about the potential agreement between both sides.

In contrast, the EU has not yet announced any plans to impose additional tariffs on Chinese goods, as previously urged by the US. This indicates a somewhat different approach towards China by the EU compared to the US.

These developments highlight the complex and evolving nature of trade and energy relations among India, the US, and Russia, with each nation navigating its own interests and alliances in this global landscape.