Trump says India’s Russian oil purchases led to the steep hike in import tariffs.
Trump Increases Tariffs on India: Key Highlights
- US President Donald Trump has announced an additional 25% tariff on goods imported from India.
- The decision comes in response to India’s continued import of crude oil from Russia.
- With the latest hike, total tariffs on Indian imports now stand at 50%, surpassing those imposed on China (30%) and Pakistan (29%).
Why the Hike?
In a signed executive order, Trump stated:
“India is directly or indirectly importing oil from the Russian Federation. I deem it necessary to impose a higher duty on Indian goods.”
The move is part of a broader strategy targeting countries funding Russia’s war in Ukraine through oil purchases. Trump warned of similar actions against other nations engaging in trade with Moscow.
Trump’s Strong Comments
In an interview with a US broadcaster, Trump criticized India’s trade practices:
- “India has not been a good trading partner.”
- “We settled on 25 percent… but I think I’m going to raise that substantially because they’re buying Russian oil.”
- He further slammed India’s non-monetary trade barriers as “strenuous and obnoxious.”
India’s Response
India’s Foreign Ministry responded by defending its oil imports, citing economic necessity:
- “Our oil purchases from Russia are dictated by global market conditions.”
- “Several Western countries, including the US, continue to trade with Russia for non-essential goods.”
Background
- On July 30, Trump had warned of tariffs as part of a reciprocal duty structure first announced in April.
- He had briefly delayed enforcement to allow negotiations, but reinstated the plan due to what he called “lack of cooperation.”
What This Means for India
- Higher tariffs could impact Indian exporters, especially in textiles, pharmaceuticals, and engineering goods.
- The development may further strain India-US trade relations, which have seen tensions over tariffs in recent years.
Also Read : Trump Threatens to Significantly Raise Tariffs on India Over Russian Oil Purchases
