Recently, US President Donald Trump said very clearly that he is not going to reduce tariffs on India. This came just one week after America doubled the import tax on Indian goods – from 25% to 50%. Trump said this was a punishment for India buying oil from Russia.
Now, let’s understand this. India buys oil from Russia because it is cheap. But America doesn’t like this, because buying Russian oil helps Russia earn money, and that money supports its war against Ukraine. So, Trump decided to punish India with very high tariffs.
Trump told reporters – ‘No, I am not removing tariffs.’ He also said that even though America and India get along well, the trade relationship has always been one-sided. According to him, India charges very high tariffs, some of the highest in the world, and that is unfair to America.
At first, the US set a 25% duty on Indian exports. But last week, Trump doubled it to 50%. This new tariff now affects more than half of the goods India sends to the US. Remember, the United States is India’s biggest export market, so this is a very big hit.
India, on the other hand, says these tariffs are unfair. The Indian government has made it clear – it will keep buying Russian oil if it is good for the country’s economy. India has also gone to the World Trade Organization, complaining about America’s high tariffs on copper products. These copper duties are different from the new 50% tariffs.
Meanwhile, Trump also said he is watching Russian President Vladimir Putin very closely. He wants to see if there will be peace talks with Ukraine. If not, Trump hinted that he could take more actions.
Interestingly, Trump claimed on social media that India had offered to cut its tariffs ‘to nothing.’ But he didn’t say when that offer was made, or whether trade talks with India will start again.
On the Indian side, Commerce Minister Piyush Goyal said he is hopeful. He believes both countries can still reach a trade deal by November. According to him, some geopolitical issues, like the Russia-Ukraine war, are affecting trade talks. But he hopes everything will be back on track soon.
.png)
0 Comments