Narendra Modi rejects Donald Trump calls four times as India-US tariff war explodes

Narendra Modi has ignored four of Donald Trump's calls (Image: Getty)

Indian Prime Minister Narendra Modi has rejected four phone calls from US President Donald Trump as the countries' relations sour, a German newspaper reported. The report in Frankfurter Allgemeine Zeitung (F.A.Z.) claimed that Modi remained frustrated and cautious about engaging in dialogue due to mounting pressure over tariffs.

The US threatened India with a 25% tariff on exports to the US due to its purchases of Russian oil, on top of a 25% tariff due to a trade imbalance, meaning the country is facing a steep 50% duty in total on major industries like textiles, gems and jewellery, auto parts, and seafood. Trump’s adviser, Peter Navarro, was quoted as saying, “I don’t think my boss will give them another extension.”

Modi is reportedly maintaining his stance on continuing to buy Russian oil, which has been claimed to be financing 'Putin’s war machine', and resisting Trump’s pressure to open India’s markets to US agribusiness.

Currently, one-fifth of Indian exports go to the US, meaning any retaliatory tariffs could have a huge impact on the economy. and F.A.Z claimed it could slow India's economic growth to 5.5%, down from an expected 6.5%.

The new rate will come into effect tomorrow, August 27, according to the executive order. A response from India's foreign ministry on Wednesday August 6 said Delhi had already made clear its stance on imports from Russia, and deemed the tariff "unfair, unjustified and unreasonable".

"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," the statement added.

Analyst Mark Frazier said the American concept of an Indo-Pacific alignment—in which India plays a central role in containing China—“is falling apart", according to the F.A.Z. report.

Instead, the report suggested that Modi was pursuing a new strategy with China, with Frazier stating that India has “common strategic interests" with the country, particularly in gaining more influence in global institutions.

It also said that Chinese investment and technology could help the Indian industry develop further.

The Prime Minister is reportedly planning to attend the Shanghai Cooperation Organization (SCO) summit in Tianjin this weekend.