Former US President Donald Trump has signaled his intent to raise tariffs on Indian imports as a direct consequence of India’s ongoing trade in Russian oil. This announcement, shared on Truth Social, reflects Trump’s continuing disagreement with India’s policy of not adhering to the US stance on the purchase of Russian oil. Trump’s criticism is centered on the premise that India is purchasing extensive volumes of Russian oil and then capitalizing on the open market by reselling it. The impact of this action could be a significant setback for India’s exports. The potential rise in tariffs is likely to have a substantial effect on various supply chains, with projections indicating a possible decline of approximately 30% in Indian exports to the US. Specific sectors, including garments, textiles, and engineering goods, are likely to bear the brunt of these tariff increases. A recent report highlights the fact that India’s exporters could face a disadvantage compared to regional competitors who enjoy more favorable tariff conditions. A five-point action plan has been put forward to support Indian businesses and assist with future trade strategies, offering financial support and exploring free trade agreements.
US-India Trade Tensions Rise as Trump Threatens Tariffs Over Russian Oil
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