U.S. President Donald Trump announced plans to substantially raise tariffs on Indian goods. This move is aimed at India’s purchases of Russian oil. Trump accused India of benefitting by purchasing Russian oil at low prices and reselling it on the open market. He also chastised India for disregarding the human toll of Russia’s conflict in Ukraine. Trump shared these thoughts on his Truth Social platform.
This is not the first substantially raise tariffs on Indian goods. Previously, he imposed a 25% tariff, claiming trade limitations. He now threatens greater tariffs as a result of India’s energy and weaponry trade links with Russia.
India’s reaction:
India reacted severely. The government described the US action as “unjustified and unreasonable.” India noted that several countries, including the EU and the United States, continue to trade with Russia. Country began importing Russian oil after conventional sources rerouted shipments due to the Ukraine crisis.
India has stated that it will take all necessary measures to preserve its national interests and economic security. It denied any wrongdoing and accused the United States and the European Union of using double standards. The Indian Foreign Ministry emphasized that the EU’s commerce with Russia is significantly larger in scope. It further stated that the United States imports uranium hexafluoride, palladium, fertilizer, and chemicals from Russia.
India highlighted that Russian oil imports were required owing to market realities and global energy security concerns. New Delhi also promised to protect farmers and workers who may be impacted by the taxes.
Economists have cautioned that substantially raise tariffs on Indian goods could hurt India’s economy and export growth. The rupee plummeted on the announcement. To mitigate the impact, Indian exporters and industry leaders advocated for the promotion of homegrown brands.
Politically, the tariff threats have increased tensions between the United States and India. Despite the fact that the situation has deteriorated, Indian leaders intend to continue with trade talks.
