Trade Tensions Rise as US Hits India with Steep Tariffs

Donald Trump has imposed an additional 25% tariff on Indian goods, raising it to 50%, in response to India's ongoing purchase of Russian oil. The move, effective from August, targets sectors including textiles and leather exports. India deems the tariffs 'unfair.'

This week, US President Donald Trump announced a significant escalation in trade tensions with India by imposing an additional 25 percent tariff on Indian goods, bringing the total to a steep 50 percent. The decision, effective from August 7, serves as a penalty for India's continued acquisition of Russian oil.

The heightened tariffs are expected to severely impact key Indian export sectors such as textiles, marine, and leather. India's Ministry of External Affairs condemned the move, labeling it as 'unfair, unjustified, and unreasonable,' and announced plans to take measures to safeguard the nation's interests.

Despite Russian oil formerly accounting for a mere 0.2 percent of India's oil imports, its prominence surged following Western sanctions, making Russia India's largest oil supplier. The US's action, perceived as a pressure tactic, coincides with upcoming trade agreement negotiations between Washington and New Delhi.

(With inputs from agencies.)