The new levies, which include an additional 25% tariff set to take effect in three weeks, come on top of a 25% duty that is already being implemented this week. The move marks a dramatic escalation in Trump’s trade war strategy and has triggered diplomatic pushback from India.
“This move is unfair, unjustified, and unreasonable,” said a spokesperson from India’s Ministry of External Affairs.
India defended its continued oil trade with Russia, saying it began diversifying supply routes due to disruptions caused by the war in Ukraine. Indian officials also pointed out that the United States had "actively encouraged" such imports to maintain global energy market stability.
Export Sector Reacts
Indian exporters have expressed serious concern over the announcement, saying the higher tariffs threaten major industries including textiles, automotive parts, and electronics.
“A 50% tariff could wipe out our competitive edge in the US market,” said an executive at a leading export consortium.
While some sectors such as steel, aluminium, pharmaceuticals, and semiconductors remain temporarily exempt, industry insiders fear further escalation could bring even these into the tariff net.
Deepinder Goyal: “India Must Be an Unapologetic Superpower”
Adding to the discourse, Deepinder Goyal, CEO of Eternal (formerly Zomato), voiced a strong opinion in a post on X (formerly Twitter):
“Global powers will continue to bully India unless we take our destiny into our own hands. We must aim to become the world’s most unapologetic superpower,” he wrote.
His remarks echo rising sentiment within India’s tech and business communities, urging stronger self-reliance amid shifting geopolitical currents.
Background
The announcement comes just hours before another round of US tariffs on global imports is set to kick in, further fueling global economic uncertainty. Analysts believe Trump’s move could complicate already fragile US-India relations and impact upcoming bilateral talks.
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