President Donald Trump has signed an executive order raising tariffs on Indian goods to 50 percent. The decision comes as a response to India’s ongoing purchases of cheap oil from Russia during the Ukraine war. The new tariffs will take effect on August 27.
Speaking at a press conference, Trump said India is helping fund Russia’s war by buying its oil. He argued that the United States should not give India full trade benefits while it continues energy deals with Moscow.
India Responds after Trump Raises Tariffs on India to 50%
The Indian government called the tariffs unfair and said they would hurt both countries. Indian officials defended their oil imports, saying they are needed to protect their economy and keep energy prices under control.
Many Indian industries could be affected, especially exporters of textiles, leather goods, and seafood. Experts say India’s exports to the U.S. could drop by 10 to 20 percent.
Oil Markets React
Global oil prices rose slightly after the announcement. Analysts said markets are worried that pressure on India could disrupt global oil supply and drive prices even higher.
Russia’s oil revenues have already dropped 27 percent compared to last year. The new tariffs could add more pressure if India reduces its purchases.
What’s Next
The tariff decision may impact upcoming trade talks between India and the U.S., which were expected later this month. It also comes as some U.S. lawmakers push for even tougher penalties on countries doing business with Russia.
For now, businesses in both countries are preparing for the impact. Companies that rely on trade between the U.S. and India may face rising costs and new challenges in the weeks ahead.
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