Trump doubles US tariff rates on India due to Russian relations

Tensions between the US and India have materialised following US President Donald Trump’s dismay over India’s relations with Russia.

Trump has increased the US tariff rates on Indian goods, as reported by The National. The order, signed on August 6th, has doubled the tariff rate from 25% to 50% making it one of the steepest charges on a US trading partner.

It is set to take effect on August 27th – just three weeks from now. The final signing of the order comes after Trump threatened India for purchasing Russian oil two days prior, on August 4th.

There have been strained relations between the US and Russia, primarily due to the Russia-Ukraine conflict. Trump had warned Russia of economic penalties being placed upon them if they failed to enter a peace deal with Ukraine. Russia’s defiance has only increased tensions between them and the US immensely, fueling Trump’s desire to economically isolate the nation by targeting its trading partners. 

On July 14th, Trump also threatened to impose a tariff rate of 100% on countries importing Russian oil if Russia did not end the war in Ukraine. In line with this threat, the executive order signed on August 6th threatens to punish other countries for the same reasons used against India. The countries referred to are those that “directly or indirectly import Russian Federation oil.” 

Trump has demonstrated his use of strategic pressure on countries that have shown any indication of support or ties to US adversaries other than Russia, such as Palestine. Trump threatened several nations with increasing tariff rates due to their shift in stance on the recognition of Palestine.

Following the statement made by Canadian Prime Minister Mark Carney that announced Canada’s plans to recognise the Palestinian state, Trump responded with a threat that trading between the two nations would become “very hard.” His comment is a reflection of his standpoint against countries that threaten the US via the use of intimidation.

Trump had announced that there would be an increase in US tariff rates on Indian goods on August 5th, according to Reuters. India’s Ministry of External Affairs has responded to the executive order. A representative has said in a statement that the decision made by Trump to double the tariff rate is “extremely unfortunate,” especially as it is for “actions that several other countries are also taking in their own national interest.” Further comments were made, calling out the US for its “unfair, unjustified, and unreasonable” actions. The representative also clarified that New Delhi imports are based on market factors to ensure residents have energy security.

Despite tensions between the US and India over this matter, Indian National Security Advisor Ajit Doval is set to visit Moscow on August 7th and meet with Russian officials. This coincides with US Special Envoy Steve Witkoff’s trip to Moscow. On this trip, Witkoff spoke with Russian President Vladimir Putin about the situation in Ukraine.

The National, Reuters, Maghrebi.org