- Jan 3, 2010
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Trump has been continuously targeting India. The latest is an increase of tariffs to 50%, which obviously appears to subdue India to make it accept certain trade negotiations, which India can accept only at its peril, especially the opening of agriculture-related fields so that the USA could dump its produce into India.
Increasing pressure on India before US negotiators are expected to reach India on August 25, US President Donald Trump on Wednesday doubled the tariffs on India to 50 percent, but there is a 21-day window before the additional tariff of 25 percent comes into effect, offering India a window to strike a trade deal.
A White House statement said that the US will impose an “additional 25 percent ad valorem duty” above the 25 percent reciprocal tariffs announced on August 1 to “deal with the national emergency stemming from Russia’s actions in Ukraine.” This tariff is deemed necessary and appropriate due to India’s “direct or indirect import of Russian Federation oil,” which the president judges will more effectively address the national emergency, the executive order said.
The additional tariffs dramatically raise pressure on India, as most of its competitors, such as Vietnam, Bangladesh, and now China, are not at lower tariffs. However, exporters said that US tariff-related uncertainty is already disrupting trade and that Indian exporters have grown wary of exporting to the US. About half of India’s total exports of $80 billion are, however, in the exemption list that includes products such as pharma and electronics goods.
While the fresh order takes the total US tariffs to their highest on any country globally, it also offers a fresh window for discussion. The Indian Express had reported on Saturday that key economic ministries have been asked for inputs to sweeten the US trade deal stuck on India’s resistance to US demand for access in the Indian agri market.
“This 25 percent ad valorem duty will be effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time 21 days after the date of the order. There are exceptions for goods that were loaded onto a vessel and in transit before this effective date and are entered for consumption or withdrawn from the warehouse for consumption before 12:01 a.m. Eastern Daylight Time on September 17, 2025,” the order read.
In actuality, China is the largest buyer of Russian oil, at about 2 million barrels per day, followed by India (just under 2 million a day) and Turkey. The US had agreed to lower tariffs on Chinese goods to 30 per cent from 145 per cent in May. The executive order does not make a mention of China, but instead stipulates a mechanism wherein the US Secretary of Commerce, in coordination with other senior officials, “will monitor if any other country (beyond India) is directly or indirectly importing Russian Federation oil and recommend further action”.
Indian exporters are in a fix, scrambling to retain access to the US — their most valuable export market, accounting for nearly 20 per cent of India’s total outbound shipments. The newly announced duties target several of India's top-performing export sectors, like auto components, steel, aluminum, smartphones, gems and jewellery. Pharmaceuticals, semiconductors, and critical minerals, however, have been excluded.
The Indian government has said that it will safegauard its national and economic interests. Indian officials have indicated that the US is unwilling to negotiate sectoral tariffs — such as those on steel and automobiles — which have already impacted nearly $5 billion worth of Indian exports. Evan A. Feigenbaum, Vice President for Studies at the Carnegie Endowment for International Peace, said on Monday that US-India relations may now become a political football, especially in New Delhi. He warned that the core understandings that enabled closer ties may be at serious risk, as New Delhi had largely assumed Washington would take political risks to strengthen the relationship — something Trump has not done and clearly will not do.
The split in relations is further underscored by Trump’s effusive praise for Islamabad and recent engagement with Pakistan’s army and government — developments that raise obvious concerns in New Delhi. “The United States was roiled by India’s ties to Iran, Myanmar, and later Russia. Trump and his administration are now moving to sanction and tariff India over its oil trade with Russia. This significantly shifts the bar for bilateral relations,” he said. The sweeping measure, aimed at correcting what Trump described as “obnoxious” non-tariff barriers, is being seen as both a protectionist move and a pointed diplomatic signal.
Increasing pressure on India before US negotiators are expected to reach India on August 25, US President Donald Trump on Wednesday doubled the tariffs on India to 50 percent, but there is a 21-day window before the additional tariff of 25 percent comes into effect, offering India a window to strike a trade deal.
A White House statement said that the US will impose an “additional 25 percent ad valorem duty” above the 25 percent reciprocal tariffs announced on August 1 to “deal with the national emergency stemming from Russia’s actions in Ukraine.” This tariff is deemed necessary and appropriate due to India’s “direct or indirect import of Russian Federation oil,” which the president judges will more effectively address the national emergency, the executive order said.
The additional tariffs dramatically raise pressure on India, as most of its competitors, such as Vietnam, Bangladesh, and now China, are not at lower tariffs. However, exporters said that US tariff-related uncertainty is already disrupting trade and that Indian exporters have grown wary of exporting to the US. About half of India’s total exports of $80 billion are, however, in the exemption list that includes products such as pharma and electronics goods.
While the fresh order takes the total US tariffs to their highest on any country globally, it also offers a fresh window for discussion. The Indian Express had reported on Saturday that key economic ministries have been asked for inputs to sweeten the US trade deal stuck on India’s resistance to US demand for access in the Indian agri market.
“This 25 percent ad valorem duty will be effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time 21 days after the date of the order. There are exceptions for goods that were loaded onto a vessel and in transit before this effective date and are entered for consumption or withdrawn from the warehouse for consumption before 12:01 a.m. Eastern Daylight Time on September 17, 2025,” the order read.
In actuality, China is the largest buyer of Russian oil, at about 2 million barrels per day, followed by India (just under 2 million a day) and Turkey. The US had agreed to lower tariffs on Chinese goods to 30 per cent from 145 per cent in May. The executive order does not make a mention of China, but instead stipulates a mechanism wherein the US Secretary of Commerce, in coordination with other senior officials, “will monitor if any other country (beyond India) is directly or indirectly importing Russian Federation oil and recommend further action”.
Indian exporters are in a fix, scrambling to retain access to the US — their most valuable export market, accounting for nearly 20 per cent of India’s total outbound shipments. The newly announced duties target several of India's top-performing export sectors, like auto components, steel, aluminum, smartphones, gems and jewellery. Pharmaceuticals, semiconductors, and critical minerals, however, have been excluded.
The Indian government has said that it will safegauard its national and economic interests. Indian officials have indicated that the US is unwilling to negotiate sectoral tariffs — such as those on steel and automobiles — which have already impacted nearly $5 billion worth of Indian exports. Evan A. Feigenbaum, Vice President for Studies at the Carnegie Endowment for International Peace, said on Monday that US-India relations may now become a political football, especially in New Delhi. He warned that the core understandings that enabled closer ties may be at serious risk, as New Delhi had largely assumed Washington would take political risks to strengthen the relationship — something Trump has not done and clearly will not do.
The split in relations is further underscored by Trump’s effusive praise for Islamabad and recent engagement with Pakistan’s army and government — developments that raise obvious concerns in New Delhi. “The United States was roiled by India’s ties to Iran, Myanmar, and later Russia. Trump and his administration are now moving to sanction and tariff India over its oil trade with Russia. This significantly shifts the bar for bilateral relations,” he said. The sweeping measure, aimed at correcting what Trump described as “obnoxious” non-tariff barriers, is being seen as both a protectionist move and a pointed diplomatic signal.
