Trump's New Tariff: A Blow to India's Exports
US President Donald Trump has imposed an additional 25% tariff on goods from India due to its continued purchase of Russian oil. This move, part of a broader strategy to address economic threats, significantly impacts Indian export sectors like textiles and leather, raising total tariffs to 50%.
- Country:
- India
In a surprising move, US President Donald Trump has implemented an extra 25% tariff on Indian goods, citing New Delhi's ongoing transactions with Russian oil suppliers. This decision comes as a significant blow to India, particularly affecting key export sectors such as textiles, marine, and leather industries.
The tariff, effective from August 27, raises the total levy on Indian imports to a steep 50%, rendering them less competitive in the American market compared to other nations like Myanmar and Thailand. This economic measure is part of an executive order aimed at addressing perceived threats from the Russian Federation.
Industry experts warn that this development could severely impact India's vast export economy, valued at USD 86 billion annually with the US. The announcement coincides with ongoing bilateral trade negotiations between the two nations, potentially pressuring India to concede to US demands in the proposed BTA.
(With inputs from agencies.)
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