US-India Trade Tension: New Tariffs Strain Bilateral Ties

The United States has escalated trade tensions by announcing an additional 25% tariff on Indian imports, accusing India of posing a 'threat' through its Russian oil transactions. This measure increases the total duty to 50%, effective August 27, sparking criticism from India as it seeks to defend its national interests.

Agneshwar Sen, EY India's Trade Policy Leader, expressed disappointment over the tariff hike, emphasizing that both nations were making strides towards resolving trade disputes. He urged for dialogue over unilateral actions, noting that such tariffs unnecessarily strain the trade environment amid ongoing efforts to negotiate a trade agreement.

In response, the Ministry of External Affairs branded the US's action as 'unfair' and vowed to take protective measures. The Indian government highlighted that its oil imports are market-based, aiming for energy security, and criticized the US's selective tariffs amid global challenges.

(With inputs from agencies.)