Trump Threatens India With 50% Tariffs for Buying Oil From Russia
Just recently, U.S. President Trump issued an executive order that applied an additional 25% tariff on India due to the country’s purchasing of Russian oil.
Trump’s threat arises from the U.S.’s opposing views and rivalry with Russia, which heightened during the Russia-Ukraine conflict. The U.S. is an ally of Ukraine, and with business partners buying from the opposition, Trump decided to punish the trade between the business partner and the U.S. by adding additional tariffs.
The total tariff on Indian imports to the United States will rise to 50% – among the highest rates imposed by the U.S. – causing international stocks and stocks relating to the industrial field to fall. According to the executive order, the updated rate will come into effect on August 27, in 21 days.
India’s foreign ministry on Wednesday responded by saying that Delhi had already made clear its stance on imports from Russia, that they were purely individual economic relations. India’s foreign ministry also reiterated that the tariff is “unfair, unjustified, and unreasonable”.
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the brief statement from India’s representative read.
“India will take all actions necessary to protect its national interests,” it added.
India is clearly displeased with the new tariffs. In response, Trump said that India doesn’t “care how many people in Ukraine are being killed by the Russian War Machine”.
On Wednesday, the White House said in a statement that India’s imports of Russian oil undermine U.S. efforts to counter Russia’s activities in Ukraine. They also added that the U.S. will be the ruler of which other countries import oil from Russia, and will “recommend further actions to the President as needed”.
The tariff means a steep 50% duty on Indian exports like textiles, gems, jewelry, and auto parts. Imports like electronics and pharmaceutical materials remain exempt for now. However, these tariffs really only challenged the relationship that the U.S. has with other countries now.
In an earlier statement, a spokesperson for India’s foreign ministry even claimed that the U.S. had encouraged India to import Russian gas at the start of the conflict. They said that the U.S. wanted them to do so “for strengthening global energy markets stability”.
This truly challenges what the U.S. wants from its business partners and the ties the nation has with other nations. The new 50% tariff applied to India, a growing world power, will only make it harder for U.S. citizens because, at the end of the day, it is the citizens who have to pay for the new prices caused by tariffs.