President Donald Trump has ignited a trade dispute with India by doubling tariffs on Indian imports to 50%. This aggressive move, which included an additional 25% tariff on goods from India for its ongoing oil purchases from Russia, has raised questions about the U.S. rationale and the fairness of the measures.
During a press conference, Trump responded to India’s criticism of the tariffs by suggesting that more sanctions were on the horizon. He stated, “It’s only been about 8 hours. So we’ll see what happens. You’re going to see a lot more… You’re going to see a lot of secondary bans.”
Addressing why India was singled out, Trump hinted at the possibility of similar actions against China, another major trading partner with Russia. He stated, “It may happen. I don’t know, I can’t tell you yet. But we did it with India. We are doing it probably with a couple of others, one of them could be China.”
Prior to the tariff announcement, Nikki Haley, a key figure within Trump’s party, voiced support for India, recognizing it as a valuable U.S. ally. She advocated against giving China any exemptions, emphasizing that China’s trade with Russia should not be overlooked. She highlighted on social media that while India faces consequences for buying Russian oil, China has a temporary pause on tariffs. Haley contended that the U.S. should not jeopardize its relationship with India by granting China a pass.
The additional tariffs, which will take effect on August 27, are in addition to the 25% tariff announced previously. Trump had previously threatened penalties on India for its energy and military purchases from Russia. These new tariffs will disproportionately affect Indian exporters compared to their counterparts in countries such as Bangladesh, Indonesia, and Vietnam.
India has strongly denounced President Trump’s decision as “unfair and imprudent.” The Indian government has previously accused the U.S. and the European Union of unfairly targeting India over its trade with Russia.