US President Donald Trump has warned India about a 25% tariff and penalties for buying oil from Russia. India has stated that it will protect its interests.
Trump Tariff: US President Donald Trump has indicated a major economic move against India. Trump said that the US is considering imposing a 25 percent import duty (tariff) on India. He stated that this step is being considered due to trade losses incurred by the US with India and India's purchase of oil and defense equipment from Russia.
Trump said that this decision could be implemented from August 1. However, he also added that no final decision has been made yet and negotiations with India are ongoing. He alleged that India is among the countries in the world with the highest tariffs, which causes losses to American companies.
US Displeasure Over Purchases from Russia
Trump said that India buys the most military equipment and oil from Russia, which is against America's strategic policies. He said that such trade with Russia at a time like the Ukraine war could harm US interests. Trump says that the US will no longer tolerate this situation.
Concerns Expressed Regarding BRICS
President Trump expressed concern about India being a part of the BRICS countries, stating that this organization is creating an economic strategy against the US. He said that India, along with countries like Russia and China, is forming a group that is a challenge to American interests.
Accusation of Trade Deficit with India
Trump said that the US trade deficit with India is continuously increasing. India sells goods to the US in large quantities, but the US cannot export as much to India due to high tariffs on American products. He said, "India's tariff is up to 100 to 150 percent, which is the highest in the world."
Trump's Social Media Statement
On his social media platform Truth Social, Trump wrote that India is a friend of the US, but its trade policies are strict. He wrote, "India’s non-monetary trade rules are very tough and are hurting us. We are looking into it."
Trump said that Prime Minister Narendra Modi is a personal friend of his, but it is necessary to improve the trade balance between the two countries. He said, "India sells us a lot, but we are able to sell them less because their tariffs are very high."
Indian Government's Reaction
Responding to Trump's statement, the Indian government said that it is analyzing the proposal and will take all necessary steps to protect its interests. Negotiations are ongoing between India and the US for a fair and mutually beneficial trade agreement. India has said that it will protect the interests of farmers, entrepreneurs, and MSMEs.