US President Donald Trump says he’s planning to sharply raise tariffs on Indian imports, potentially within the next 24 hours. The announcement follows earlier steps he took, including slapping a 25% tariff on goods from India.
He’s also hinted at adding an extra penalty, citing India’s ongoing purchases of Russian oil despite pressure from the West to cut ties amid the war in Ukraine.
In a CNBC interview, Trump called India “not a good trading partner” and claimed it imposes the “highest tariffs of anybody” on American products.
He tied his latest tariff threat directly to India’s energy trade with Russia, accusing the country of “fueling the Russian war machine” by buying discounted Russian oil and allegedly reselling it at a profit.”
Trump’s message was echoed on social media, where he doubled down on the claim that India’s actions are undermining global efforts to isolate Moscow. He warned that unless things change, he’s ready to push tariffs on Indian goods even higher.
New Delhi hits back at US, Europe
The development came as India shot back at Donald Trump’s tariff threats, calling them unfair and politically motivated. The Ministry of External Affairs said India has the right to choose who it trades with and won’t be pressured into cutting ties with Russia.
Officials also pointed out what they see as a double standard, noting that several Western countries still deal with Russia in various ways.
India made it clear it plans to stick to its independent foreign policy and won’t shift its position under external pressure. Energy security and national interest, they said, remain the priority.
Moscow also pushed back hard, with Kremlin spokesman Dmitry Peskov criticizing the US for what he called “unlawful pressure” on countries that continue doing business with Russia.
He argued that Washington is overreaching by trying to dictate how other nations manage their trade ties, adding that the situation is a reminder of how deeply politics is now entangled with global commerce.
Sharp escalation
India exports pharmaceuticals, textiles, gems, jewellery, and IT services to the US, while importing crude oil, defense equipment, electronics, and industrial machinery from America.
The US is one of India’s largest export markets, and trade between the two continues to grow despite occasional tariff disputes and regulatory challenges.
The threat of even steeper tariffs marks a swift and sharp escalation in tensions between the US and India, coming just days after the initial 25% hike was unveiled.
The sudden escalation has caught the attention of economists, some of whom say the fallout could trim as much as 0.2% off India’s GDP growth if the measures go through.
Markets didn’t take the news lightly either. Indian stocks dipped as investors weighed the potential impact on exports and broader trade relations.
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