US Doubles Tariffs on Indian Goods to 50% Over Russian Oil Imports
The United States has imposed an additional 25% tariff on Indian goods, bringing the total to 50%, in response to India's continued purchase of Russian oil. The White House stated the measure addresses national security concerns related to the conflict in Ukraine. India's Ministry of External Affairs called the action "unfair, unjustified and unreasonable," asserting its oil imports are market-driven and essential for energy security. The move threatens to strain diplomatic and trade relations and could significantly impact Indian exports to the US.
Unpacked:
The U.S. sees India's continued purchase of Russian oil as indirectly supporting Russia during the Ukraine conflict, potentially weakening Western sanctions on Russia and undermining efforts to isolate it economically in response to its actions in Ukraine.
Indian exports to the US are substantial, including sectors such as textiles, pharmaceuticals, engineering goods, and information technology. Increased tariffs could hurt these industries by making their products less competitive in the American market.
Trade tensions between the US and India date back decades, including a major tariff dispute in 1985. The US has often used tariffs to pressure India on issues ranging from economic policy to geopolitical alignment, especially concerning ties with Russia.
The tariff increase threatens to strain diplomatic ties, potentially affecting cooperation on defense, technology, and regional security. It may also prompt India to seek closer ties with other global partners, reducing US influence in the region.