ISTOCK
US President Donald Trump is “frustrated" with the lack of progress on trade talks with India and feels that the 25 per cent tariff imposed on the country will "address and remedy” the situation, the White House economic adviser suggested on Wednesday.
National Economic Council Director Kevin Hassett indicated that Trump was upset over the way negotiations on the proposed bilateral trade deal were held.
The two sides held a series of negotiations on the trade deal but no concrete outcome emerged in view of certain contentious issues.
Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment.
The surprise announcement came a day after Indian officials said that a US trade team would visit from August 25 to negotiate a trade deal.
The announcement by Trump is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favourable trade deals with major partners like Japan, the UK and the European Union.
Hassett said India has had a market that's been pretty much closed to American products while the US has been wide open to theirs.
He indicated that Trump was frustrated with the lack of progress that the US made with India, but “feels that a 25 per cent tariff will address and remedy the situation in a way that's good for the American people”.