India: Trump slaps 25% extra tariff for buying Russian oil
What's the story
In a major escalation of trade tensions, US President Donald Trump has announced a 25% additional tariff on Indian goods. The move comes in response to India's continued purchase of Russian oil, with some references to defense equipment. The decision is likely to strain India-US trade relations and could have a massive impact on sectors such as pharmaceuticals, textiles, and machinery.
Tariff
A look at the tariffs
The total tariff on Indian goods, with a few exceptions will now be 50%, with the additional levy taking effect on August 27. Trump had previously accused India of not being a good trading partner and said he would raise tariffs on New Delhi "very substantially" for buying Russian oil.
Dates
What about the timelines?
The tariff will apply to goods consumed or withdrawn from a warehouse for consumption after 12:01am EDT, 21 days from the date of this order. It will also apply retrospectively on the goods consumed or withdrawn from a warehouse for consumption before 12:01am EDT on September 17.
Rebuttal
MEA accused US of double standards
Responding to Trump's accusations, India defended its position on the issue of Russian crude oil procurement. The Ministry of External Affairs (MEA) issued a statement highlighting the double standards in targeting India, while ignoring trade relations with Russia by both the US and EU. The MEA noted that these countries continue to import various goods from Russia, including uranium hexafluoride for nuclear industry.