US President Donald Trump has doubled India’s tariff to 50 per cent by imposing an additional 25 per cent levy on the previously announced 25 per cent.
Former US Ambassador to the United Nations Nikki Haley urged President Donald Trump to view India as aย “prized free and democratic partner” to counter China, warning that “scuttling 25 years of momentum” with New Delhi would amount to a “strategic disaster.”
This comes after the US levied an ad valorem duty of 25 per cent on Indian goods, but has announced an additional 25 per cent tariff that will take effect from August 27, raising the total duty to 50 per cent.ย
Nikki Haleyย warns of ‘strategic disaster’
In an opinion piece for Newsweek, Haley called a strong partnership between India and China a “no-brainer” emphasising that the rise of a democratic India does not threaten the free world, “unlike Communist-controlled China.”
“India must be treated like the prized free and democratic partner that it is–not an adversary like China, which has thus far avoided sanctions for its Russian oil purchases, despite being one of Moscow’s largest customers. If that disparity does not demand a closer look at U.S.-India relations, the realities of hard power should. Scuttling 25 years of momentum with the only country that can serve as a counterweight to Chinese dominance in Asia would be a strategic disaster,” she said.
“Unlike Communist-controlled China, the rise of a democratic India does not threaten the free world. Partnership between the US and India to counter China should be a no-brainer,” she added.
She also emphasized that India has the potential to manufacture goods at a scale comparable to China, which could enable the US to shift critical supply chains away from Beijing. Additionally, she noted that India’s expanding defense capabilities and its active role in the Middle East are “crucial” for maintaining regional stability.
“In the short term, India is essential in helping the United States move its critical supply chains away from China. While the Trump administration works to bring manufacturing back to our shores, India stands alone in its potential to manufacture at a China-like scale for products that can’t be quickly or efficiently produced here, like textiles, inexpensive phones, and solar panels,” the former US Ambassador said in the opinion piece.
“India’s growing clout and security involvement in the Middle East could prove essential in helping to stabilise the region as America seeks to send fewer troops and dollars there. And India’s location at the centre of China’s vital trade and energy flows could complicate Beijing’s options in the case of a major conflict,” she added.
India is world’s fastest-growing major economy: Nikki Haley
Haley highlighted that India, the worldโs fastest-growing major economy, is set to surpass Japan soon. She added that Indiaโs rapid rise poses one of the biggest challenges to Chinaโs ambition of reshaping the global order. “Simply put, China’s ambitions will have to shrink as India’s power grows,” she added.
She also highlighted India’s conflicting economic interests and ongoing territorial disputes with China, mentioning the Galwan Valley skirmish in 2020. She said that the partnership with the US would serve America’s interests to help India stand up to its increasingly aggressive northern neighbour, both economically and militarily.
She advised India to take President Trump’s point on Russian Oil seriously and work with the White House to find a solution and urged to “reverse the downward spiral” and hold direct talks with PM Modi. “The sooner the better,” she said.
“The administration should focus on mending the rift with India and giving the relationship more high-level attention and resources–approaching what the U.S. devotes to China or Israel,” she added.
She further said that the US should not lose sight of what matters most, “our shared goals. To face China, the United States must have a friend in India.”
(With ANI inputs)
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