The US President has gone too far and has penalised its onetime friendly country India by levying unprecedented 50 percent tariff on Indian goods entering American markets. This is fundamentally and basically bullying tactics by world cop America and will have its negative implications on Indian economy various sectors. Earlier American President had levied 25 percent tariff on Indian goods but now he has doubled the tariff and raised it to 50 percent to penalise India for continuing to purchase Russian oil,a move that is likely to hit sectors like textiles, marine and leather exports. The US has only singled out India and levied 50% tariff and left other countries like China and Turky unaffected. India has sharply reacted to the imposing of 50% tariff saying that it is unjust, unfair and unreasonable. EAM said that it is unfortunate that US choose to impose additional tariff on Indian goods entering US markets. It further said that India will take all actions to safeguard its national interests.

India buys about 88 percent crude oil from other countries and Russia hardly make 0.2 percent of all crude oil India imported till 2021.Aftre Russia invaded Ukraine, Russian oil was available at a discount to international benchmarks due to Western sanctions, and was quickly lapped by Indian refiners. Russia is now the largest oil supplier to India. This is undigestible to America and thus she laid 50 percent tariff on India.
The move would affect India’s USD 86 billion worth of exports to US severely. FIEO,DG said ,’’It is extremely shocking. It will impact India’s 55% of exports to US. Prime minister Modi said we will pay any price to protect our farmers. Prime minister Modi’s remarks were seen as a direct response to US President Donald Trump who slapped a 50 percent tariff on India for its continued purchases of Russian oil. Tariff hike plunges US-India relations to lowest in recent years.PM Modi made it clear that he would continue to stand by the country’s farmers and bear brunt pf America’s steepest tariffs.’’ For us ,the interest of our farmers is our top priority’ ’,the PM said .’’India will never compromise on the interests of farmers, fishermen and dairy farmers .’
’He added ,’’I know I will have to pay a heavy price for it personally, and I am ready for it. India is ready for it.’’The PM’s defiant tone came after Trump imposed an additional 25% tariff on Indian goods,pushing the total duty to a staggering 50%,the highest the US has imposed on any country. The move is widely seen as a direct punishment for India’s refusal to toe the US line on buying Russian oil and military equipment, a sore point that has strained a strategic relationship that was on the up and up. While calling India a ‘’friend ’’,Trump warned of a ‘’penalty’’ for its Moscow liaisons just days ago. On Wednesday, he delivered. The US President has also warned of ‘’secondary sanctions’ ’in the coming days. India called out Washington’s double standards in singling it out for Russian oil imports while continuing to buy Russian uranium hexafluoride, palladium and fertiliser. The tariff hike also reflects growing frustration in Washington over stalled bilateral trade deal negotiations,which broke down after New Delhi refused to cede ground on agricultural market access and digital trade rules.
Trump’s tariff offensive has plunged US-India ties to their lowest point in recent years. It has also raided, concerns among exporters and industry leaders on both sides. Analysts warn the tariff could hurt key Indian sectors including textiles, pharmaceuticals, and processed foods all major contributors to India’s exports. EAM’s reaction came after Trump signed an executive order penalising India for continuing oil trade with Russia by slapping New Delhi with 25% additional tariff.
The MAE criticised US move as ‘’unfair, unjustified and unreasonable. ’’The five point Indian response to US tariff bomb is as under.1—US targeting India’s oil trade—‘’The United States has in recent targeted India’s oil imports from Russia.’’—2—India reiterates sovereign energy security---‘’We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.’’—3---Selective targeting ---It is very unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are taking in their own national interest.—4---Rejection of tariff---We reiterate that these actions are unfair, unjustified and unreasonable.—5—Firm Warning---India will take all actions necessary to protect its national interests. Jaiswal had said that while it has been targeted by the US and the EU for importing oil from Russia,these imports began as its traditional supplies were diverted to Europe,and the US at that time ‘’actively encouraged such imports by India for strengthening global energy market stability.
Trump’s 50% tariff may clip India’s growth by 1 % say analysts. India is among the hardest hit as US began imposing higher tariffs on goods from dozens of trading partners. Thursday, marking a significant escalation of President Donald Trump’s push to reshape global trade in America’s favor.
The visit by a US delegation for the next round of trade talks on August 25 is expected to go ahead as planned ,government officials told Moneycontrol on August 7 ,a day after American president Trump announced an additional 25 percent Russia levy on Indian goods. India has found itself in the crosshairs of US President Donald Trump over the last few days. What does it mean? It means Trump is now seizing every opportunity –press briefings ,off -hand remarks to reporters, social media posts –to target India, he once saw as a close ally. On Wednesday, Trump announced that he is doubling tariffs on India to 50% --among the highest on any country in the world-over New Delhi’s move to purchase oil from Russia. The he threatened to impose secondary sanctions, signalling that he is in no mood to let India off the hook until he manages to arm -twist the country into giving him what he wants. While Trump’s bitter tirade has caused concerns in New Delhi, the US Presidents behaviour is unpredictable as it may seem –is not a bolt out of the blue. While, Trump’s bitter tirade has caused concerns in New Delhi, it is not a bolt out of the blue. It is just Trump’s pressure tactics to force India into toeing its line. Trump is economically blackmailing India but India won’t bend and compromise.

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