Trump Slaps 50% Tariff on Indian Imports
The former President announced an additional 25% 'penalty' for India's continued import of Russian oil, threatening to derail ties and impacting geopolitical narratives.
GG News Bureau
Washington, 6th Aug: Donald Trump announced a new 25 per cent “penalty” tariff on Indian goods, bringing the total duties on imports from India to 50 per cent. The tariff, which takes effect in 21 days, is a direct result of India’s continued import of Russian crude oil.
The announcement was made via an executive order, in which Trump stated he found it “necessary to impose an ad valorem duty on imports of articles from India.” The 50 per cent tariff is now higher than the 30 per cent on China and significantly more than the 19 per cent on Pakistan, to whom Trump has offered a new trade deal and a tariff cut.
In comments to a US broadcaster, Trump criticized India as a “not good trading partner” and accused the country of having “the most strenuous and obnoxious non-monetary trade barriers.”
In response, the Indian government pointed out that many Western nations, including the European Union, continue to import goods from Russia. The government defended its purchase of Russian oil as a “necessity compelled by the global market situation,” in contrast to other nations’ trade for non-essential products.
The move comes as India-US trade negotiations, which began under President Joe Biden, have stalled. The dispute has been fueled by India’s refusal to open its price-sensitive agriculture markets to American farmers.
Initial projections from senior government sources to NDTV suggested that a 25 per cent tariff would have a “negligible” impact on the Indian economy, with a potential GDP loss of only 0.2 per cent. However, this estimate does not account for the additional 25 per cent penalty announced by Trump. The former President’s actions threaten to change geopolitical dynamics, potentially pushing BRICS nations like India, Russia, and Brazil closer together.
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