New Delhi: The 50% tariffs imposed by the United States on Indian goods not only surprised Narendra Modi’s government, but many analysts and experts around the world.
Over and above the 25% reciprocal tariff, the Trump administration later levied a 25% penal tax on India, ostensibly for continued purchase of Russian crude oil.
Now, a report by American multinational investment bank and financial services company Jefferies says that the harsh tariffs are largely a result of President Donald Trump’s “personal pique”, at not being allowed to mediate in the conflict between India and Pakistan in May.
According to Jefferies, Trump had “hoped to intervene” following the four-day military conflict between the two neighbours between May 7 and 10.
“Tariffs (on India) are primarily the consequence of the American President’s ‘personal pique’ that he was not allowed to play a role in seeking to end the long-running acrimony between India and Pakistan,” the report said.
“India has never accepted third party intervention in its relations with Pakistan, and this remains a ‘red line’ despite the economic costs of depriving the 47th American president of one of his opportunities to win the Nobel Peace Prize,” it added.
The Jefferies report further stated agriculture is another sticking point between India and the US, and that no Indian government, including the current one, is willing to open up the agriculture sector to imports “because of the severe consequences it would have on millions of people.”
In the early hours of May 7, India’s Armed Forces carried out precision strikes to destroy nine terror infrastructure in Pakistan and PoK. The strikes were in response to the deadly April 22 Pahalgam terror attack, that killed 26 innocent men.
India’s action sparked a retaliation from Pakistan, and a series of attacks and counter-attacks ensued across the northern and western border.
After four days of fighting, involving fighter jets, missiles, armed drones, fierce artillery, the two DGMOs spoke and decided to end military hostilities on May 10.
It was Trump who first announced that India and Pakistan had agreed to a full and immediate ceasefire after a long night of talks “mediated” by Washington. Since then, he has repeatedly claimed that he helped settle the conflict between India and Pakistan.
The US President also claimed that he used trade as a tool to convince the two nuclear-armed countries to reach a ceasefire agreement.
The Indian government has repeatedly rejected Trump’s claim, saying the halt in military actions was a result of direct contact between the two DGMOs. India has also maintained that the contact was initiated by the Pakistani side.
