The United States has imposed new tariffs on India, sparking a diplomatic and economic dispute between the two nations. On Wednesday, President Donald Trump signed an executive order to levy an additional 25% trade tariff on Indian goods, citing India’s continued purchases of Russian oil. This new tariff, which comes on top of an existing 25% duty, brings the total tariff on Indian imports to 50% and is set to take effect in 21 days. The White House justified the action by stating that India’s oil trade with Russia undermines U.S. efforts to counter Russia’s “harmful activities” in Ukraine and enables the Russian economy to fund its aggression.
India’s Ministry of External Affairs (MEA) was quick to condemn the move, with spokesman Randhir Jaiswal calling the US actions “unfair, unjustified, and unreasonable.” The MEA stated that India’s imports of Russian crude oil are based on market factors and are essential to ensuring the energy security of its 1.4 billion people. The statement also highlighted what India perceives as a double standard, pointing out that other nations, including some in Europe and the U.S., continue to engage in trade with Russia.
The escalating trade tension marks a significant strain on the relationship between Washington and New Delhi, which has been growing closer in recent years. Analysts believe the move could significantly impact India’s economy, with one expert from the Global Trade Research Initiative estimating a potential 30% drop in Indian goods exports to the U.S. in the current fiscal year. The new tariffs have prompted India to consider a multi-pronged strategy to mitigate the economic fallout, including promoting domestic production and seeking alternative export markets.
Sources:
Trump doubles tariff on India to 50% over Russian oil purchase – The Economic Times
Trump hits India with additional 25% tariff: Breaking down US’ latest move against New Delhi – The Economic Times
Trump slaps 50 percent tariff on Indian goods over imports of Russian oil – Al Jazeera
