Trump imposes 50% tariffs on India as punishment for buying Russian oil | Trump tariffs

Donald Trump imposes a 50% tariff on most U.S. imports from India, threatening to punish one of the world’s largest economies for buying discounted Russian oil.

Tariffs came into effect in Washington at midnight on Wednesday, which could cause major damage to the Indian economy and further damage global supply chains.

Earlier this month, the U.S. tariffs on Indian goods were in effect, but Trump Announcement of plans to doubleThis is what the White House believes that the reason New Delhi bought Russian oil was indirectly funding Russia’s war against Ukraine.

Since re-entering the White House in January, the U.S. president has greatly increased U.S. tariffs on most of the world’s goods, tense relations with allies and competitor economies, and heightened concerns about higher inflation.

This latest move has brought the highest responsibility of Indian exporters to the United States to Trump’s slap in goods from overseas. Brazil is also imposing a 50% tariff on exports to the United States.

Indian ministers believe that the country may work closer with Moscow and Beijing and further develop from Washington due to trade relations with Russia.

Although the U.S. Trade Representative said most Indian goods are facing huge responsibilities to the U.S. (worth $87.3 billion last year and $87.3 billion last year) despite the huge responsibility of exporting most Indian goods to the U.S. (US$87.3 billion last year) despite the fact that there are some key products that will be exempt from including smartphones.

The action was confirmed in a U.S. Department of Homeland Security notice earlier this week, prompting some economists to predict a sharp decline in trade between the two countries.

“I don’t care about India’s behavior towards Russia,” Trump claimed on his social network truth society last month. “They can take the dead economy away for everyone I care about.”

In India, Always rebellious. The government refused to stop buying Russian oil, and Prime Minister Narendra Modi urged Indians to buy locals.

“We all should follow the mantra of buying only Indian goods’ making goods. “The pressure on us may increase [from the tariffs]but we will endure it. ” he added.

Santanu Sengupta, chief Indian economist at Goldman Sachs, warned that the continued 50% tax could reduce GDP growth below 6%, with a forecast level of about 6.5%. Competitive exporters facing U.S. tariffs are already rushing to buy U.S. buyers, and the goods are cheaper.

About 30% of India’s exports to the United States – including medicines, electronics, raw materials and refined fuels – are worth $27.6 billion, and are still tax-free. But industries like textiles, gems and jewelry, and seafood have long relied on the U.S. market and are facing contraction in orders. “With a 50% tariff, exports are very difficult,” Sengupta said.

The effect is already visible. The Federation of Export Organizations of India (FIEO) reported that textile and garment manufacturers in Tirupur, Delhi and Surat have stopped production due to “deterioration in cost competitiveness”.

“Indian goods become non-competitive compared to competitors from China, Vietnam, Cambodia, the Philippines and other Southeast and South Asian countries,” said Fieo President SC Ralhan.

Indians’ shares fell 1% on Tuesday, or 849 points, to 849 points, to 849 points, while Indians’ shares fell 1% to 849 points.

The United States is India’s largest export market, accounting for almost one-third of goods in key sectors such as gemstones, jewelry and textiles, highlighting the potential economic impact.

Even if the tariffs are relaxed, Believe in the future relationship with Washington Probably the biggest casualties.

“Trump has blown it up. The hard work between the two countries, essentially distrust each other, still managed to build a solid strategic relationship,” said a senior Indian trade official who asked to be anonymous. “It will take a long time to restart, and it may not happen until Trump is out.”

“On the work level, the state must cooperate, but politically, it seems that none of them can be afforded.”

Foreign Affairs Minister S Jaishankar called Washington’s request for New Delhi to stop buying Russian crude oil “unreasonable and unreasonable” and accused the West of hypocrisy, noting that Europe has a larger deal with Russia. To avoid additional U.S. tariffs, India will have to replace about 42% of its oil imports.

Although Trump accused India of indirectly funding Russia’s war against Ukraine through the purchase of Kremlin crude oil, he did not take similar action against another major buyer, China.

He also tried to spread tensions with Moscow, Invite Russian President Vladimir Putin to Alaska For the summit earlier this month and Even mocking the trilateral meeting Ukrainian President Volodymyr Zelenskyy is part of an effort to end Russian invasion of Ukraine.

Jaishankar said U.S.-India trade talks continue despite tensions. “We are two big countries and we need to have dialogue…these lines are not cut,” he said.

The previous trade transaction limit tariff limit was 15% after India refused to open its agricultural markets to U.S. agricultural commodities because they feared harming poor farmers in the country.

India has spun towards Russia, known as “all-weather friend”, Jaishankar recently traveled to Moscow to meet Putin, who is expected to visit New Delhi later this year. Modi will also attend China for the Shanghai Cooperation Organization summit for the first time in seven years, aiming to stabilize relations after the deadly Himalayan conflict in 2020 has caused the ties to be frozen.

“India will tip the feet to China, but don’t embrace it all. There was a trust factor in the past, and there was a lot of history to reconcile with China, but the reality is that India must do business with China,” said another senior Indian official, who also asked not to be named.

“Electricity [Trump] The government may create the most records of its own goals in such a short time with bilateral partners.