US Imposes 50% Tariff on India. Trump Cites Russian Oil Imports as Reason. PM Modi to Hold Cabinet Meeting Today. India May Retaliate Strongly.
US Tariff India: Prime Minister Narendra Modi is scheduled to hold a high-level meeting with senior cabinet ministers on Friday to discuss the US decision to increase tariffs on Indian goods to 50 percent. The meeting will address India's strategic response to the new US trade policy.
The sudden increase in tension in the long-standing trade relations with the United States now points towards a major decision. Following this meeting, the Indian government may announce some b measures.
Trump's Allegation and Reason for Increasing Tariff
US President Donald Trump announced the tariff increase on India on Wednesday. He stated that India is still importing large quantities of crude oil from Russia. Based on this, the United States has imposed a total tariff of 50 percent, adding an additional 25 percent duty to the existing 25 percent. This new tariff will be effective from August 27.
India's Strong Response
The Indian Ministry of External Affairs has reacted sharply to this decision by the Trump administration. The ministry stated that India's energy security and strategic autonomy should be respected.
The spokesperson for the Ministry of External Affairs said that India makes decisions based on global energy market conditions, and buying oil from Russia is in line with India's policy. He termed the US tariff as unfair and unbalanced.
Prime Minister Modi Gives Big Message in the Interest of Farmers
On Thursday, from the platform of the MS Swaminathan Centenary International Conference, Prime Minister Narendra Modi indirectly responded to the US decision.
He said, “India will not compromise on the interests of its farmers, fishermen, and animal herders under any circumstances. I know that I may have to pay a heavy personal price for this, but I am fully prepared for it.”
What Could Be India's Retaliatory Measures?
The measures that may be discussed in the cabinet meeting include retaliatory tariffs on goods imported from the US, a formal complaint to the WTO, and policy amendments for American companies. In addition, India may work on a strategy to further diversify energy sources so that imports from partners like Russia are not affected.
Trump Dismisses Possibility of Talks
When asked if there was any possibility of talks with India, Trump dismissed it outright. He said that there is no possibility of any talks until India changes its policies.
