Divergent Views on India – US Relations over Tariff War

Manas Dasgupta

NEW DELHI, Aug 23: Two divergent opinions about the deteriorating ties between India and the United States under the President Donald Trump have emerged from the US officials, with one detesting the “ordering, pressuring, and pushing around” in negotiating deals while the other believed that it was not unfair to “sometimes asking for more from your friends.”

The more positive remarks come from the US Congressman Michael Baumgartner who claimed that Mr Trump “respects” India and the Prime Minister Narendra Modi “a lot,” and was confident of a “successful conclusion” and “rebuilding their relations” soon, former Secretary of State John Kerry expressed concern over Mr Trump “alienating allies like India” by his one-sided dictating terms.

Amid the strained ties between the two countries over soaring tariffs. Mr Baumgartner said Mr Trump “respects” India and Mr Modi “a lot” and asserted that while there may be bumps on the way, India and the US would come to a “successful conclusion” soon and rebuild their relations.

“We know President Trump is a dealmaker, and he has a lot of respect for India. He also enjoyed his trip to India very much a few years ago. He values the relationship with PM Modi. I’m very optimistic that it will be worked out. There may be some bumps along the way, but it will come to a successful conclusion,” Mr Baumgartner said.

According to Mr Baumgartner, the higher tariffs on India show that sometimes one has to ask more from friends. “Well, I think sometimes you have to ask more of your friends, and it should really be interpreted, I think, as a sign of respect towards India that America is asking more of India. I can understand that there may be frustrations looking at it from the Indian lens, but look at what America is trying to achieve and what President Trump is trying to achieve. And so the message I’ve communicated to your leaders is simply that the fundamentals between our two countries are very strong,” he said.

India and US ties had strained in recent weeks after the Trump administration imposed secondary tariffs on India for buying Russian oil, and reportedly also over New Delhi denying his peace-making role during their recent conflict with Pakistan. The US tariffs on Indian exports now stand above 50 per cent. This is the highest tariff Trump has imposed as per his fresh list, apart from Brazil.

India condemned the “unfair, unjustified and unreasonable” move by the United States – which is likely to hit many sectors such as textiles and marine exports. PM Modi also issued a strong message stressing that India would never compromise with the interests of its farmers and fishermen, adding that while he knows he will “have to pay the price,” he was ready to do it for farmers.

Speaking further on the ties between the two countries, Mr Baumgartner said members of the Republican Party have “a lot of respect” for Indians and Indian companies. “You only have to look at the Indian Americans who are doing so many dynamic things. I think we would like to see increased military engagement between the United States and India. That’s a process. But the more that our two militaries integrate, the more flexibility they have and the more able they are to do things to work together to counter terrorism and other strategic issues,” he said.

The US Congressman also addressed the visa complications in the US for Indians. “I think we’d also like to see more engagement on the educational level, more Indian students coming to study in the United States. Right now, there’s a bit of an issue with visas because of the new visa process. But again, the fundamentals for looking at the way the Indian students have contributed to the US economy and the way they’ve taken skills back here and increased that collaboration. That’s another area of strong points,” he said.

In contrast, Mr Kerry who served under President Barack Obama, said Mr Trump alienating allies like India was a matter of great concern. Giving ultimatums without making any genuine diplomatic efforts did not exhibit greatness, he said describing the strain in India-US ties as “unfortunate.”

“We are concerned. This struggle between President Trump and PM Modi is unfortunate. Great nations don’t necessarily exhibit greatness by giving people ultimatums all the time without sort of a genuine diplomatic effort to try to find common ground and do things through the normal course of business,” he said.

The senior US official said during the Obama regime, negotiations were done through cooperation and respect. But now, there has been “a little bit too much ordering, pressuring, and pushing around,” he said. Mr Kerry hoped that New Delhi and Washington would resolve their trade dispute. He also referred to PM Modi and Commerce Minister Piyush Goyal as friends and said he admired India’s negotiations.

“My hope is that we will resolve this dispute. I think India has made a pretty powerful offering frankly,” he said, noting reports that India had offered zero tariff on a number of US imports as a “big shift.” Kerry is among the numerous former US officials and experts who have raised concerns over Trump’s policies that alienate India.

Trump’s former aide John Bolton had slammed the President earlier this month for jeopardising decades of American efforts to bring India away from Russia and China, and warned that his pro-China bias could be an “enormous mistake.” He had called it ironic that the secondary tariff, which was intended to hurt Russia, could push India closer to Russia and China, and perhaps even make them negotiate together against the US.

US foreign policy expert Christopher Padilla, a former US trade official, had also warned that the tariffs could pose a risk of long-term damage to India-US ties. It could raise questions later whether the US is a reliable partner, as the tariffs would remain in memory, he feared.

A top US economist Jeffrey Sachs had ripped into President Trump’s punitive tariffs as “the stupidest tactical move in US foreign policy.” “These tariffs on India are not a strategy; they’re sabotage…The imposition of the 25 per cent penalty tariff on India, what it did overnight was unify the BRICS countries as never before,” he had said.