Indian and US trade negotiators could not finalise the trade deal by the 1 August tariff deadline set by Trump. This led to the Trump administration imposing 25 percent tariff on India—significantly higher than for its Asian counterparts, as well as Pakistan. While the Indian government was grappling with the tariff rate, Trump signed an executive order Wednesday, imposing an additional 25 percent tariff on India for importing and processing Russian oil. The two decisions by the Trump administration effectively increase the applied tariffs to India to 50 percent. However, it is crucial to note that the fine print of the US executive order states that the additional 25 percent tariff on India will come into force 21 days from 6 August. US’ trade negotiators are set to arrive in New Delhi on 24 August, leaving just enough room for a last-minute trade agreement to be finalised. The Indian government has responded to the increased tariffs by labelling the action “unfair, unjustified and unreasonable”. Randhir Jaiswal, spokesperson for the Ministry of External Affairs (MEA), Wednesday said: “It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.” He promised that India will take all “actions necessary to protect its national interests”. India has maintained that the purchase of Russian oil is a “vital national compulsion”. (Edited by Nida Fatima Siddiqui) Also Read: India’s export basket has no irreplaceables. It’s a vulnerability in Trump’s power politics
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