A report by Jefferies says President Donald Trump’s decision to impose 50 percent tariffs on India stemmed from two main reasons: personal pique and agriculture.
The investment bank noted the tariffs were largely the result of Trump’s frustration after India rejected his repeated offers to mediate in the long-running conflict with Pakistan, a role New Delhi has consistently refused to grant any third party.
The second driver was agriculture, as India has long resisted opening its farm sector, which employs about 40 percent of the workforce, to U.S. imports.
India condemned the tariffs as “unjustified and unreasonable,” warning of economic fallout.