Washington/New Delhi: Diplomatic relations between the United States and India have hit a fresh low as tariff disputes intensify, with White House National Economic Council Director Kevin Hassett openly expressing dissatisfaction with India’s trade policies. He said India must open its markets to American goods, particularly dairy products, if it expects the Trump administration to reconsider additional tariffs. Hassett cautioned that if India continued its rigid stance, the US could further harden its trade measures.
Admitting for the first time that dairy imports were the key issue behind the tariffs, Hassett aligned with India’s long-held position, though he also linked the dispute to India’s oil trade with Russia. He suggested that ongoing tariffs were partly tied to Washington’s geopolitical pressure on Moscow amid the Ukraine conflict. While noting that tariff negotiations would be lengthy and yield limited immediate results, he reiterated the US demand for greater market access.
Earlier, US Treasury Secretary Scott Besant struck a more hopeful tone, saying both nations were likely to find common ground despite the complexities. He underlined the strategic importance of ties between the world’s largest democracy and the world’s largest economy, highlighting the personal rapport between Prime Minister Narendra Modi and President Donald Trump. However, Besant defended Washington’s decision, pointing out that India has some of the highest tariff barriers globally, which prompted the US to impose retaliatory duties.