US President Donald Trump has imposed a steep 50% tariff on Indian goods to retaliate against the country for buying Russian oil, reversing decades of Washington's efforts to forge closer ties with New Delhi.
Points of attention
- Trump dared to make a complete U-turn on India for the sake of helping Ukraine.
- New Delhi still defends its relations with Russia and calls the US actions “unfair.”
Trump made a tough decision regarding India
Journalists point out that the new tariffs, which are currently the highest in Asia, have effectively doubled the existing 25% tariff on Indian exports.
In addition, it is noted that the duties will cover more than 55% of goods shipped to the US, India's largest market.
According to economists, they will primarily hit labor-intensive industries, such as the textile industry and jewelry production.
Key export goods such as electronics and pharmaceuticals are duty-free, which currently saves Apple Inc. from having to invest heavily in building a new factory in India.
Experts point out that extremely high tariffs will significantly reduce the competitiveness of Indian exports compared to competitors such as China and Vietnam.
Trump's new tough decision actually worsens relations between India and the US.
This marks a complete reversal in the White House's strategy, which for years has been to engage India as a counterweight to China.
