India vs. U.S.: Trade talks scrapped amid showdown over Russian oil
U.S wants India to stop buying Russian oil and India is refusing to. This visit was scheduled to take place between August 25th and 29th. Now? It's scrapped. This even as U.S has imposed an additional 25% tariff on Indian exports beginning 27th August as a penalty for buying Russian oil.
Trump's cumulative 50% tariff on India is among the highest on any of U.S' trading partners. The fallout? A stalled trade deal, rising economic tensions, and no date set for future talks.
And with PM Modi reiterating India’s energy independence in his Independence Day speech, this standoff may be far from over. India's balancing act just got a whole lot more complicated.
Modi vows self-reliance
Prime Minister Narendra Modi on said that India is seeking self-reliance in energy independence and the development of its own powerful defence systems, vowing to defend his country's interests "like a wall".
Modi delivered his annual Independence Day address from the imposing ramparts of New Delhi's Red Fort at a time when India faces intense pressure and threats of additional tariffs from the United States.
"Self-reliance is the foundation of developed India," Modi said after a flypast of military helicopters scattered flower petals above an invited crowd of thousands.
"Freedom becomes meaningless if someone becomes too dependent on others".
Ties between New Delhi and Washington have been strained by Trump's ultimatum that India end its purchases of Russian oil, a key source of revenue for Moscow as it wages its military offensive in Ukraine.
India has said it "stands ready" to support efforts to end the Ukraine war and endorses a summit to be held between Trump and Russian President Vladimir Putin in Alaska on Friday.
But the United States says it will double new import tariffs on India from 25 percent to 50 percent by August 27 if New Delhi does not switch crude suppliers.
"We know that we remain dependent on many countries to meet our energy needs", said Modi, leader of the world's most populous nation and fifth-biggest economy.
"But to build a truly self-reliant India, we must achieve energy independence."
US Secretary of State Marco Rubio, in a statement congratulating India's Independence Day, said the relations between the two nations were "consequential and far-reaching", and wanted to "ensure a brighter future for both".
