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Trump’s 50% tariffs on India driven by ‘personal pique’: Jefferies report
The Jefferies report also said that agriculture is another sticking point between India and the US.
The fifty per cent tariffs imposed by the United States on Indian goods are largely a result of President Donald Trump's "personal pique" at not being allowed to mediate in the India-Pakistan conflict, according to a report by American multinational investment bank and financial services company Jefferies.
The report said Trump had “hoped to intervene” following the four-day military conflict between the two countries in May.
"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.
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The report also said that agriculture is another sticking point between India and the US. It added 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.”
India's Operation Sindoor
India carried out precision strikes under Operation Sindoor on terror infrastructure in Pakistan early on May 7. The strikes were in response to the April 22 Pahalgam terror attack that killed 26 people.
They also sparked a series of attacks and counter-attacks across the western border, involving fighter jets, missiles, armed drones, and fierce artillery and rocket duels. After four days of fighting, military hostilities were stopped on May 10 as the two nations reached an understanding.
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On May 10, Trump announced that India and Pakistan agreed to a full and immediate ceasefire after a long night of talks "mediated" by Washington. Since then, he has been repeatedly claiming that he helped settle the tensions between India and Pakistan.
Trump also claimed that he told the nuclear-armed South Asian neighbours that America would do a “lot of trade” with them if they stopped the conflict.
The Indian government has rejected Trump's claim of mediation between India and Pakistan to stop military actions from both sides.
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India has maintained that the halt in military action on May 10 was a result of direct contact between the DGMOs of both nations. The contact was initiated by the Pakistani side, New Delhi has maintained.
Trump's tariffs on India
President Donald Trump had first announced a 25 per cent tariff on Indian goods.
Later, he signed an executive order imposing an additional 25 per cent tariff on India’s purchases of Russian oil, bringing total U.S. tariffs on Indian exports to 50 per cent. The tariffs took effect on Wednesday, August 27.
Trump has attributed India's Russian oil purchase for the additional tariff move.
