Denied role as peacemaker, Trump unleashing tariff terror on India: US-based investment bank
The report said Trump had reportedly hoped to intervene following the four-day military conflict between the two countries in May.
NEW DELHI: The steep 50 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 recent report by American multinational investment bank and financial services company Jefferies.
The report said Trump had reportedly hoped to intervene following the four-day military conflict between the two countries in May. "Tariffs 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."
India has consistently maintained that it does not accept third-party intervention in its conflicts with Pakistan.
Jefferies pointed out that this "red line" was upheld despite the heavy economic costs, effectively denying Trump one of his opportunities to strengthen his international standing and potentially seek recognition such as the Nobel Peace Prize.
Another sticking point is agriculture, it said, noting that no Indian government is willing to open up the agriculture sector to imports because of the consequences it would have on millions of people.
The draconian tariffs now imposed on India are also tied to a wider chain of events. Trump has not been able to end the Ukraine conflict as promised, and India's continued purchases of Russian oil have become an added issue in Washington.
However, it stressed that the underlying cause remains India's refusal to allow Trump's personal intervention in the Pakistan issue.
