Tensions Rise as US Imposes Steep Tariffs on Indian Imports

In an unfolding economic saga, Israel's Ministry of Finance chief economist Shmuel Abramzon expressed belief that the 50% US tariff on Indian imports would be a transient issue. Dr. Abramzon told ANI that a resolution between the US and India, who share a strong partnership, seems likely.

The statement comes as global markets tremble following the US's imposition of drastic tariffs on India, totaling 50% after additional sanctions due to India's oil imports from Russia. The US President, Donald Trump, highlighted no further tariffs have been initiated against countries engaging Russia, though he did categorize actions towards India as a broader economic measure against Russia.

Trump remarked on India's position as a significant buyer of Russian oil, second only to China, as the reason for potential additional measures. With tariffs on China temporarily halted until November, India finds itself targeted with hefty duties. Analysts speculate these tariffs aim to curb Russia's oil export by pressuring major importers.

Amidst this, Trump reiterated the importance of tariffs in correcting trade imbalances, criticizing India's hitherto protective tariff policies. In discussions, Trump stated India has proposed eliminating tariffs to amend longstanding one-sided trade dynamics, though he deemed the offer belated.

(With inputs from agencies.)