US President Donald Trump has given a big economic blow to India by announcing a total tariff of 50%. In a press conference held on Tuesday evening, Trump said that he has signed a new executive order, which will impose an additional 25% tariff on all products coming to America from India.
This tariff will be effective from August 27, while 25% tariff was already in place.
Trump cited India’s ongoing energy trade with Russia as the main reason behind increasing the tariff. He says that India’s purchase of oil and other resources from Russia is indirectly supporting the destruction happening in Ukraine.
However, India has completely rejected this allegation and said that America itself is also buying products like palladium and uranium hexafluoride from Russia.
India’s Foreign Ministry reacted sharply to Trump’s decision, saying that America’s attitude reflects “selective morality”.
India also made it clear that it will prioritize its energy needs and the interests of farmers, whether it is buying oil from Russia or banning GM foods on agricultural goods.
According to analysts, this decision is not limited to trade with Russia. Trump has long been promoting protectionism under his “Make America Great Again” policy.
He believes that America will have to make foreign products expensive to increase its manufacturing capacity.
India has responded to this economic pressure by turning to alternative export markets. Recently, the Indian government has launched a Rs 20,000 crore export promotion program to reduce dependence on the US.
Also, India has intensified trade talks with several Asian and European countries.
Now all eyes are on August 27 – will this tariff be implemented or will a new dialogue begin between the two countries once again?