Breaking News: Donald Trump Imposes 25% Tariff On India, Penalty for Russian Oil Purchase

India-US Trade Deal: US President Donald Trump has imposed a penalty of 25% on India that will be in effect from August 1.

Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA! Trump wrote on his social media account.

Donald Trump’s move could put more pressure on the relations between the U.S. and India. He had earlier said that Washington will take necessary steps to counter “unfair trade practices” by the Indian government.

India-US Trade Deal: How Will The New Tariff Rates Affect India?

An official list of the products that would be impacted by the tariffs is yet to be released, experts say it could contain textiles, manufactured goods, and pharmaceuticals. These are the areas in which the U.S. lags behind India in the trade balance.

Reports suggest that following Trump’s step, trade worth billions of dollars could be affected. India is yet to give a response to this, but trade experts say New Delhi could be forced to take countermeasures, triggering a chain of trade disputes between both countries.

U.S. Had Repeatedly Threatened India With More Tariffs If It Continues Buying Russian Oil

The decision has sparked concerns among the Indian-American business groups located in the U.S. as they brace for a turbulent trade atmosphere. 

U.S. Senator Lindsey Graham had threatened India, Brazil, and China last week that importing oil from Russia could result in huge tariffs on these countries, and it could “cripple” their economies.

He accused the three countries of financing the “war-machine” of Russia’s President Vladimir Putin in Ukraine and asked these nations to immediately stop trade with Moscow.

Earlier, Trump had also said that “India has been a good friend, but India has charged basically more tariffs than almost any other country… You just can’t do that.” 

Also Read: Donald Trump Announces 25% Tariff On India: What It Means For India-US Trade, Defense Ties