It is perhaps easier to be rivals with Donald Trump’s US than be a friend, indicated author, professor and Director of the CFR China Strategy Initiative, Rush Doshi. This comes after Trump said he expects a “fair deal” with China, before he said India will pay 25 per cent tax, as well as penalty, starting from August 1. This was before Trump scoffed at India’s “dead economy”, as he referred to it.
“This threat to India just a day after Trump extends a trade truce with China and thanks them for selling us rare earth magnets. The Trump doctrine is to be tougher on allies and partners than on adversaries,” said Doshi.
Not only the matter of the trade deal, China is also looking at a delayed deadline of August 12, unlike India, who is staring at the August 1 deadline for the Trump tariffs to come into effect, like the rest of the world.
“We’re moving along with China. We’re doing fine with China. I think it’s going to work out very well. We’re right in step. I think we’re going to have a very fair deal with China,” he said. Trump also made a deal with Pakistan to develop their “massive oil reserves”. As he announced the deal, he also took an unwarranted jibe at India. “We are in the process of choosing the oil company that will lead this partnership. Who knows, maybe they’ll be selling oil to India some day!” he said.
The relaxation for China is unexpected considering both Washington and Beijing imposed high ‘reciprocal’ tariffs upwards of 100 per cent on each other.
Many have called this the worst the India-US relations have gotten in 25 years, since 1998, when India tested the nuclear weapons. Trump appears to be dissatisfied with India over a number of issues – its high tariffs, India’s membership in the BRICS that he has accused of de-dollarisation and “anti-American activities”, as well as India’s refusal to say no to Russian oil.
The US President had also blamed the tariff and the penalty on New Delhi’s purchase of arms and oil from Moscow, as well as its ‘non-monetary trade barriers’. Subsequently he said that the penalty was partly due to trade issues and partly because of India’s participation in the BRICS group.
It must be mentioned here that China too is a core member of the BRICS group, and the escalating trade wars have also seen it imposing high tariffs on US goods. China is also known to have various ‘non-monetary trade barriers’.
The 25 per cent tariffs on India – that too amid the ongoing talks – could affect the strategic partnership between Washington and New Delhi, which also serves as a counterbalance to Beijing.
