The United States is set to impose a 25% tariff on goods imported from India, alongside an undisclosed penalty linked to India’s trade with Russia, as stated by President Trump. These tariffs will come into effect on August 1, coinciding with the US deadline for negotiating a trade agreement. Trump characterized India as a friendly nation but criticized its high tariffs, which he claims are among the highest globally. He also condemned India for acquiring Russian military gear and energy amidst the ongoing crises in Ukraine.
There has been no immediate feedback from Indian officials, who have been in talks with the US for several months regarding trade. The previous year saw a substantial US trade deficit of $45.8 billion with India. Trump had previously announced tariffs of 27% on Indian imports, although they were temporarily halted.
Negotiations between the two countries have seen fluctuating optimism, with US Trade Representative Jamieson Greer acknowledging the challenges posed by India’s longstanding protectionist policies, particularly in agriculture, which remains a central issue in talks. While India has taken steps to reduce tariffs on some goods, it continues to navigate complex trade dynamics with the US, aiming to enhance trade relations.
As both nations strive for a robust partnership, the target remains to expand bilateral trade from $190 billion to $500 billion.
Source: www.bbc.com
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