Trump imposes an additional 25% tariff on India, the total goes up to 50%
US President Donald Trump on Wednesday slapped an additional 25 percent tariff, raising it to 50 percent, on goods coming from India as a penalty for India’s continued purchase of Russian oil, a move that is likely to hit sectors such as textiles, marine, and leather exports hard. The United States has imposed this additional tariff or penalty for Russian imports only on India, while other buyers such as China and Turkey have so far escaped such measures. The 30 percent tariff on China and 15 percent on Turkey is lower than India’s 50 percent.
Reacting to the development, India said that these actions are “unfair, unjustified and unreasonable“. It is extremely unfortunate that the US should choose to impose additional tariffs on India, the External Affairs Ministry said in a statement, adding India will take all actions necessary to protect its national interests.
Trump signed an executive order – Addressing threats to the US by the Government of the Russian Federation – imposing the additional tariff over and above the 25 percent levy, which comes into effect from August 7. After this order, the total tariff on Indian goods, barring a small exemption list, will be 50 percent.
“The ad valorem duty imposed…Shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports…,” the order said. While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days or on August 27.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” said Trump.
India buys about 88 percent of its crude oil, which is converted into fuels like petrol and diesel, from overseas. Russian oil made up hardly 0.2 percent of all crude oil that India imported till 2021. After Moscow invaded Ukraine, Russian oil was available at a discount to international benchmarks due to Western sanctions, and was quickly lapped up by Indian refiners. Russia is now India’s largest oil supplier.
In July, India imported about 5 million barrels of oil a day, of which 1.6 million came from Russia.
After the new levy, India will attract the highest tariff of 50 percent along with Brazil. After this, India’s competitors will be much better placed in the US market as their duty is lower – Myanmar (40 percent), Thailand and Cambodia (both 36 percent), Bangladesh (35 percent), Indonesia (32 percent), China and Sri Lanka (both 30 percent), Malaysia (25 percent), Philippines and Vietnam (both 20 percent). The announcement comes at a time when a US team is scheduled to visit India from August 25 for the sixth round of negotiations for the proposed bilateral trade agreement (BTA).
The sectors, which will have to bear the brunt of these tariffs, include textiles/ clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery. The exempted goods, which will not be subject to the high tariffs, include pharmaceutical; energy products such as crude oil, refined fuels, natural gas, coal, and electricity; critical minerals; and a wide range of electronics and semiconductors, like computers, tablets, smartphones, solid-state drives, flat panel displays, and integrated circuits.
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Dump Stump age is a burden to USA. time God to bless him & take him to save America
Love Dump Stump for he is alone & feeling lonely in this world. All sympathies with him & his lack of understanding. To be nationalist does not mean one can play Robin Hood. There is something called Dharma & English has no equivalent word for it.
Trump wants reaction and India does not seem to oblige him not , so the tariffs will probably go higher, with some effects but is unlikely to to kill the dead economy.