Trump's Deal With China Pushed India To Harden Stance On Trade Pact With US: Report

India’s position in trade talks with the United States began to harden after Donald Trump struck a deal with China, Reuters has reported.

The two nations had initially moved quickly to negotiate a pact after Trump’s “Liberation Day” tariffs in April, with Vice President JD Vance visiting New Delhi on 21 April to tout progress. But the China agreement shifted the calculus.

Indian negotiators saw Beijing gain tariff relief and market access, narrowing some of the advantages India had enjoyed as an alternative supplier to the US. This prompted New Delhi to dig in on key disputes, including access for US farm goods and genetically modified crops, while also threatening retaliatory tariffs on steel and aluminium.

The talks soured further after Trump claimed credit for brokering a May ceasefire between India and Pakistan, a claim Prime Minister Narendra Modi rejected in a tense 17 June phone call, the Reuters report adds.

On Thursday, Trump announced a 50 per cent tariff on Indian exports, half tied to imports of Russian oil. Modi has vowed to protect farmers but left the door open to concessions to reach a deal.