India isn’t flinching: Why Trump might be misreading India’s tariff playbook

India has taken a more measured approach toward U.S. President Donald Trump compared to China and Brazil, but some in Washington may be interpreting this as a sign of U.S. leverage. Indian Prime Minister Narendra Modi may be able to afford to wait, as any breakthrough between Russia and Ukraine could remove the U.S.′ reason for its 50% tariffs on India.

Trump has said India’s purchases of Russian oil are why it’s facing these high tariffs, with the full rate due to be imposed 21 days after Trump’s executive order was signed Wednesday.From bureaucrats to businesses, there’s a broad consensus in India that the latest escalation from the U.S. is only a pressure tactic to fast-track trade talks. However, Indian Prime Minister Narendra Modi now has something he didn’t have, even a day earlier: the support of the Indian opposition to push back.

Rahul Gandhi, the leader of India’s largest opposition party, the Indian National Congress, described the penalty for Russian oil purchases as “economic blackmail” by Trump.

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