For more than three decades, Indian and American leaders pursued a mutually beneficial relationship that built upon common grounds and sought middle grounds in case of divergences. But the principle of mutuality that underpinned the India-US relationship has now ended.
With 50 per cent tariffs, unending verbal attacks, unleashing his minions to insinuations lacking factual bases, and a
burgeoning alliance with India’s adversaries, Trump has made it clear that he is not seeking a negotiated trade agreement but wants India to accept his diktats without question — and that he is up for getting his hands dirty in this pressure campaign.
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It is this approach, and not any unmanageable differences on trade or foreign policy, that has driven the India-US relationship to the lowest point in decades.
Firstpost has learnt that India-US trade talks were going well until Trump abruptly dumped the progress and ramped up his demands to unrealistic levels.
Even as Trump has claimed himself to be a master dealmaker, Firstpost has learnt that he has been a fickle in trade talks and has not been consistent in his terms.
India-US trade talks were going well — then came Trump
In July, Indian and American negotiators were close to finalising a draft for a trade agreement well ahead of the August 1 deadline, but Trump ramped up his demands out of nowhere and blew up the progress, Firstpost has learnt.
It is not clear if it was a draft for the final trade deal or a ‘mini deal’ that negotiators were said to be looking forward to at the time.
Firstpost learnt that India offered certain relaxations in trade talks, which would have helped American businesses, but that was not enough for Trump.
It is understood that these relaxations concerned regulatory and compliance matters that would have created an enabling environment for American businesses looking to enter India. It is not understood to be acceptance of American demands on contentious issues like agriculture, dairy, and genetically modified (GM) crops.
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Firstpost has also learnt that Trump was fickle in trade talks, offering India tariff rates of 10 per cent, 15 per cent, and 19 per cent at various points.
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With tariffs & threats, Trump dashes hope of being India’s top partner
Such an unpredictable manner in serious bilateral trade pact talks suggests that President Trump is not negotiating in good faith and wants all gains from a deal for himself instead of a win-win deal, according to Ram Singh, a professor of international trade and business at the Indian Institute of Foreign Trade (IIFT).
“India has always valued its autonomy. India will not agree to an unequal trade deal like Japan or South Korea, which are dependent on the United States for security. The current trade tensions and the way US officials have conducted themselves in unprecedented. Previously, they understood Indian positions. Now, they have a ‘my way or the highway’ approach and want everything for themselves,” Singh tells Firstpost.
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Trump risks decades of progress in India-US ties
In India, Trump is already being compared to late Richard Nixon, the disgraced Cold War-era President of the United States who sided with Pakistan and deployed the 7th Fleet of the US Navy to intervene in the India-Pakistan War of 1971 on the side of Pakistan.
That episode is seared into the In