Donald Trump Announces 25% Tariff on India With Penalty
NEW DELHI – The US President Donald Trump has announced that India will face significant tariffs and penalties starting August 1, amidst ongoing trade disputes and India’s continued procurement of energy and arms from Russia. The move signals a major escalation in trade tensions between the two nations, despite ongoing efforts to finalize a bilateral trade agreement.
Trump stated that India will be subjected to a 25% tariff, along with an additional penalty for its continued purchases of energy and military equipment from Russia. This comes as the United States and its allies view such transactions as implicitly backing Russia, believing they strengthen Moscow’s economy and undermine international sanctions, particularly given the conflict in Ukraine.
In a statement posted on “Truth Social,” Trump emphasized, “THE AUGUST FIRST DEADLINE – IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!” He reiterated concerns about India’s high tariffs and “strenuous and obnoxious non-monetary Trade Barriers,” noting that despite being a friendly nation, little business has been done due to these obstacles. He specifically highlighted India’s position as Russia’s largest buyer of energy, alongside China, and a major purchaser of its military equipment, at a time when the US seeks to halt the conflict in Ukraine.
While discussions for a bilateral trade agreement have been ongoing, with five rounds of talks already concluded and a sixth slated for August, a breakthrough remains elusive. Key sticking points in the trade deal have revolved around agriculture and dairy sectors, where India has maintained a firm stance against opening its markets.
Indian government officials, according to Reuters, have hinted that any tariffs imposed by the US from August 1 are likely to be temporary, pending the finalization of a comprehensive trade deal. However, the American president’s recent announcements suggest a more resolute approach, putting significant pressure on India to reconsider its trade policies and its relationship with Russia. The impending tariffs pose a considerable challenge for India’s economy and its trade relations with one of its key strategic partners.
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Source: Times of India