Trump’s 50 pc tariff on Indian goods takes effect as US doubles import duties
Donald Trump imposed an additional 25 per cent tariff due to India's purchases of Russian oil, over a prior 25 per cent US duty on many products from India
A steep 50 per cent US tariff on a wide range of Indian products took effect on Wednesday (August 27), doubling the existing 25 per cent duty.
The move, ordered by US President Donald Trump to penalise New Delhi for its continued purchase of Russian oil, has sharply escalated trade tensions between the world’s two largest democracies and strategic partners.
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50 pc tariffs for India
Trump has steadily increased pressure on India over its energy imports from Russia as part of Washington’s broader campaign to end the war in Ukraine.
On Monday (August 25), the US Department of Homeland Security issued a draft notice outlining plans to implement a 50 per cent tariff on products from India.
With the latest measure, US duties on Indian goods now stand at 50 per cent, the highest for any country other than Brazil.
Trump imposed an additional 25 per cent tariff due to India's purchases of Russian oil, over a prior 25 per cent US duty on many products from India.
The increased tariffs cover products such as garments, gems and jewellery, footwear, sporting goods, furniture and chemicals.
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Failed trade talks
The decision comes after five rounds of five rounds of trade negotiations over several months in which both the parties failed to secure a trade deal.
But tariff exemptions remain for sectors that could be hit separately, like pharmaceuticals and computer chips.
As the tariffs came into force, Trump posted an image of himself with an oil barrel on his Truth Social account, emblazoned with the slogans "America First" and "America is back."
Also Read: US issues notice about additional 25 pc tariffs on Indian imports from Aug 27
Modi urges resilience
Meanwhile, Prime Minister Narendra Modi, during his address in Ahmedabad on Monday said that India would withstand external pressure and safeguard the interests of farmers, cattle rearers and small-scale industries.
“The interests of farmers, cattle rearers, and small-scale industries are paramount. Pressure on us may increase, but we will bear it all,” he said.
A day later, addressing another rally in Gujarat, he renewed his call to embrace swadeshi. “My definition of swadeshi is simple. I do not care whether the money is in dollars or pounds, or where it comes from. What matters is that the sweat and hard work should be Indian.”