'Using tariffs to dictate India': Kanwal Sibal slams Donald Trump over tariffs on India for Russian oil imports

Former Foreign Secretary of India Kanwal Sibal accused US President Donald Trump of using tariffs as a tool to dictate to India on foreign policy. He also referred to Trump's multiple deadlines to arrive at an India-US free trade agreement as 'veiled ultimatums'. 

Sibal's post came after the US Department of State's Principal Deputy Spokesperson Tommy Piggot emphasised the importance of honest and open dialogue to address US' key concerns such as Russian oil purchases and trade imbalance.

"Rubbish. There is no honest dialogue. It is arm-twisting. Trump has been laying dates by which an agreement is to be concluded under pain of high tariffs. These are veiled ultimatums," he wrote in a post on X (formerly Twitter).

Sibal, who has also served as India's Ambassador to Russia, decoded Trump's actions and said that the US' imposition of additional 25 per cent tariffs on India is in complete violation of the rules of the World Trade Organisation (WTO). 

"Trump is acting unilaterally to force India to accept his trade demands by imposing punitive tariffs in total violation of WTO rules. Worse, he is using tariffs to dictate India on the foreign policy front and interfere with its vital relationships for its economy and security. How are disputable US concerns more important than legitimate Indian concerns?"

Meanwhile, former US Deputy Secretary of State Kurt Campbell said in an interview with CNBC that America's relationship with India is now at risk. 

"The way President Trump has spoken about India and PM Modi has put the Indian govt in a difficult position,” Campbell said. He also said that Indian strategists are going to do the exact opposite if the US tells them to sacrifice their time-tested relationship with Russia. 

“Prime Minister Modi cannot and should not bend the knee to President Trump,” he further said. 

Moreover, Moody's Ratings indicates the tariffs could threaten India's manufacturing sector, particularly in electronics, by widening the tariff gap with other Asia-Pacific countries. "The much wider tariff gap compared with other Asia-Pacific countries would severely curtail India’s ambitions to develop its manufacturing sector," noted Moody's.

The report also suggests a potential GDP growth reduction in India by 0.3 percentage points if the situation remains unchanged, impacting its strategic positioning in global manufacturing.

US President Donald Trump has signed an Executive Order imposing a total of 50% tariffs on Indian exports due to India's continued purchase of Russian oil. This measure, effective in 21 days, aligns with international efforts to counter Russia's actions in Ukraine.