US Tariffs Now 20% Higher on India Than on China; New Delhi Vows to Protect National Interests as Trade Tensions Rise Over Russian Oil Imports
🔹 Overview: A Sharp Escalation in US-India Trade Tensions
In a major setback to India-US trade relations, former US President Donald Trump has announced a new 25% penalty tariff on Indian imports, raising total US duties on Indian goods to 50%. This move comes as retaliation against India’s continued import of Russian oil, triggering strong condemnation from New Delhi.
⚠️ India now faces 20% higher tariffs than China and 31% more than Pakistan on exports to the US.
The additional tariffs are set to take effect in 21 days.
🔹 India’s Strong Response: “Will Take All Actions to Protect National Interests”
Within hours of the announcement, India’s Ministry of External Affairs issued a firm statement rejecting the new tariffs as:
- Unfair
- Unjustified
- Unreasonable
Key Points from India’s Official Statement:
- India’s oil imports are based on market conditions and the energy needs of 1.4 billion citizens.
- India highlighted that many other countries, including the US and EU, continue to import goods from Russia.
- “We will take all actions necessary to protect our national interests,” the government declared.
🔹 Context: What India Said Earlier on US Tariffs
Earlier this month, after Trump’s initial 25% tariff threat, India said:
- It was studying the implications of the move.
- The US had previously encouraged energy imports from Russia during the Ukraine conflict.
- Countries like Germany, France, and the US itself still import critical materials from Russia including:
- Uranium hexafluoride
- Palladium
- Fertilizers
- Machinery and chemicals
India argued that targeting only India was discriminatory and economically unjustifiable.
🔹 Trump Unmoved: “India Fuelling the War Machine”
Despite India’s arguments, Donald Trump remained firm. In a recent CNBC interview, he said:
“India, Russia can take their dead economies down together.”
“India has not been a good trading partner… I think I’m going to raise [the tariff] substantially over the next 24 hours because they’re buying Russian oil.”
In the executive order, Trump cited a “national emergency” and labeled Indian imports as “a threat to the national security” of the US due to their indirect support of Russia.
🔹 Key Sectors Likely to Be Hit by the 50% Tariff
The highest tariff on any Asian country, this 50% rate could have a severe impact on Indian exports, especially:
- 🧵 Textiles & garments
- 🚗 Auto components
- 🛞 Tyres
- 🧪 Chemicals & agrochemicals
- 💎 Cut & polished diamonds
Possible Implications:
- Shrinking margins for Indian exporters
- Disruption of India-US supply chains
- Potential retaliation or trade recalibration by India
Conclusion: Trade Relations Under Strain
With escalating tensions and aggressive tariffs, India-US trade relations face one of their biggest tests in recent years. As India asserts its sovereign right to manage energy security, and the US retaliates citing geopolitical risks, global markets and supply chains may brace for ripple effects.
Also Read : Trump Doubles India Tariff: From 25% to 50% Over Russian Oil
