US imposes 50 percent tariff on India over Russian oil purchases

Washington’s determination to treble tariffs connected galore Indian goods poses a immense hazard to India’s biggest export market.

The United States has doubled tariffs connected galore imports from India to 50 percent, arsenic US President Donald Trump followed done connected his menace to punish New Delhi for buying discounted Russian oil.

The steep tariffs, which came into unit connected Wednesday, hazard inflicting important harm connected the Indian system by threatening commercialized with its largest export market. India exported much than $87m worthy of goods to the US successful 2024.

The Indian government, which has criticised the determination arsenic “unfair, unjustified and unreasonable”, estimates the tariffs volition interaction much than $48bn worthy of exports. Indian officials pass that the caller duties could marque exports to the US commercially unviable, starring to occupation losses and slowing maturation successful the world’s fifth-largest economy, The Associated Press quality bureau reported.

The US had already slapped 25 percent tariffs connected Indian goods earlier this month, arsenic portion of a question of further duties connected goods from allies and competitors alike since Trump returned to the White House.

But the latest hike connected Indian products doubles that rate, successful a determination to punish New Delhi for buying Russian oil, which the White House argues is indirectly backing Russia’s warfare connected Ukraine.

More than one-third of India’s crude lipid imports came from Russia past year, a commercialized narration that has spurred disapproval from Washington. Trump’s commercialized adviser, Peter Navarro, told reporters past week that “India doesn’t look to privation to recognise its relation successful the bloodshed” successful Ukraine.

The determination leaves Indian exporters facing among the highest US duties Trump has slapped connected goods from overseas. Brazil is besides grappling with 50 percent tariffs connected galore of its exports to the US.

‘Strategic shock’

A New Delhi-based deliberation tank, Global Trade Research Initiative (GTRI), says labour-intensive sectors specified arsenic textiles, gems and jewellery, leather, and nutrient are apt to beryllium deed the hardest by the caller tariffs, which airs a superior menace to India’s commercialized with the US.

“The caller tariff authorities is simply a strategical daze that threatens to hitch retired India’s long-established beingness successful the US, causing unemployment successful export-driven hubs and weakening its relation successful the concern worth chain,” Ajay Srivastava, GTRI laminitis and erstwhile Indian commercialized official, told the AP.

The US has, for now, exempted immoderate cardinal sectors, specified arsenic pharmaceuticals and physics goods, from further tariffs. The Trump medication has launched investigations into these and different sectors that could yet effect successful further duties.

The tariffs travel arsenic the Trump medication pushes for greater entree to India’s agriculture and dairy sectors, amid Indian absorption to opening the sectors to cheaper US imports.

Prime Minister Narendra Modi has said India should not output to the pressure.

“For me, the interests of farmers, tiny businesses and dairy are topmost. My authorities volition guarantee they aren’t impacted,” Modi said astatine a rally this week successful his location authorities of Gujarat.

Source:

Al Jazeera and quality agencies