From Aug. 27 onwards, Indian goods entering the US are subjected to an additional 25% levy to penalise New Delhi for its Russian crude purchase. This takes the cumulative tariff on India to 50%, which is at par with Brazil and highest among all major US trading partners.
From calling India ‘a dead economy’ a few weeks ago, Trump has recently indicated that the US and India will remain close partners.
The US president, earlier this month, shifted his tone on India, describing Prime Minister Modi as a “friend” with whom he plans to speak soon. Modi reciprocated the gesture on social media platform X, calling the US as a valued ally of India.
However, earlier this week, he called on EU officials to impose tariffs of up to 100% on China and India to pressurise Russian President Vladimir Putin. Trump reportedly made these remarks during a conference call with EU sanctions envoy David O’Sullivan and other EU officials, who were in Washington to discuss sanctions coordination.
Last week, Trump admitted that the 50% tariffs on India had caused a rift.
“India was the biggest customer, but I put a 50% tariff on them as they buy oil from Russia. That’s not an easy thing to do. It’s a big deal. This caused a rift with India. This is a European problem more than our problem,” Trump told Fox News.
