Former U.S. President Donald Trump has announced that tariffs on Indian goods will be raised sharply. This has caused a lot of shock in the political and business worlds. The price increase, which is set to happen within the next 24 hours, could have a huge effect on Indian exporters, costing them as much as $18 billion a year, according to early trade figures.
In an interview with CNBC, Trump said that India was still buying big amounts of cheap Russian oil with the intention of refining it and selling it around the world, including to the United States, for a profit. He said this was “profiteering during war,” which means it might lower pressure on Russia over the Ukraine conflict around the world.
A trade partner that isn’t fair is India, Trump said. “They give oil to Russia to power their war machine and then sell it back to us.” “That’s not okay.”
Following the imposition of 25% tariffs on Indian exports, Trump now says he will raise those tariffs “very substantially.”
India Responds and Stands By Energy Choices
When India’s Ministry of External Affairs spoke out against the price increase, they said it was “unilateral and unjustified.” Officials made it clear that India only turned to Russian oil after the Ukraine war caused problems with the world’s energy supply. They also warned Washington that some Western countries, like the US, are still trading with Russia in limited ways.
“India makes decisions about energy based on what’s best for the country and what’s affordable.” “Any attempt to make oil imports political is unacceptable,” a top MEA official said.
Reports say that the Indian government is thinking about taking trade measures to get back at the US, but diplomatic avenues are still open.
Exporters and businesses are getting ready to lose a lot
Indian producers, especially those who make textiles, medicines, and parts for cars, are likely to be hit the hardest. Trump’s plan to raise tariffs on items from India could make them more expensive in the U.S. by up to 30%, making them less appealing compared to China, Vietnam, or Mexico.
The government needs to move quickly, say trade groups like FICCI and CII. They are worried that long-term tensions could stop investments, lead to job losses, and slow down the trade growth between India and the U.S. that has been building over the past ten years.
Modi Government Gets Slammed by Opposition
Back in India, the Congress party used the chance to say bad things about the Modi government. They brought up the fact that Trump and Modi used to get along and asked why the Indian government was quiet while the U.S. was going after Indian interests.
A senior Congress leader tweeted, “Dost dost na raha,” making fun of past events like “Howdy Modi” and “Namaste Trump.”
As tensions rise, all eyes are now on the upcoming international talks that could decide the future of trade between India and the United States.
