New Delhi: US President Donald Trump on Wednesday announced 25% tariffs on goods imported from India “plus a penalty”, starting August 1.
India will have to pay the additional penalty – an unspecified over and above the 25% – for buying energy and arms from Russia.
“Remember, while India is our friend… we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world. And they have the most strenuous and obnoxious non-monetary trade barriers of any country,” Trump said in a post on Truth Social.
“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine. All things not good! India will, therefore, be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1…,” he added.
The 25% tariff rate announced for India is 1% less than the 26% declared by Trump in his April 2 ‘Liberation Day’ conference.
This announcement came hours after the US President warned of tariffs up to 25% on its exports to the United States if a bilateral trade deal is not finalised by August 1, while accusing India of maintaining disproportionately high tariff barriers against American goods.
Trump has consistently urged India to liberalise its market for US products, but negotiations have stalled over agriculture and dairy sectors, where the latter has firmly resisted concessions.
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