The imposition of a 50% tariff by the US on India was motivated by the rejection of President Trump’s mediation offer between India and Pakistan, according to a Jefferies report. The report suggests that Trump was keen to mediate following increased tensions. The report states that the tariffs were a direct result of Trump’s discontent over not being allowed to facilitate a resolution. The move followed the Pahalgam terror attack and came despite significant economic consequences. Jefferies pointed out the importance of the Indian agricultural sector as a factor, and the reluctance of Indian governments to open this sector to imports due to the impact on millions of livelihoods. The analysis from Jefferies also mentions the ongoing conflict in Ukraine, which Trump was unable to resolve as promised, and India’s continued purchases of Russian oil, which has led to further issues in Washington.
