US-India trade war escalates as Donald Trump levies 50% tariff

US President Donald Trump has announced an increase in the import duty (tariff) on India by 50%. According to a notice issued by his administration, this new tariff system will come into effect from 12:01 am on August 27. This move is expected to further deteriorate the already tense relations between Trump and India.

New Delhi: US President Donald Trump has announced an increase in the import duty (tariff) on India by 50%. According to a notice issued by his administration, this new tariff system will come into effect from 12:01 am on August 27. This move is expected to further deteriorate the already tense relations between Trump and India.

Main reason for increasing tariff: Buying oil from Russia

The main reason for this tough step is said to be India's purchase of oil from Russia. Trump is angry that India is continuously importing oil from Russia. The Trump administration believes that this action of India is a matter of concern for US national security.

 

He alleges that India's purchase of oil from Russia is indirectly providing financial assistance to Russia to run the Ukraine war. Trump is putting pressure on all countries doing business with Russia, and this tariff on India is a part of the same strategy. Earlier there was talk of a tariff of 25%, which has now been increased to 50%.

India's response: National interest is paramount.

India has strongly condemned this decision of America. India's Foreign Ministry has termed this tariff as 'unjust' and 'wrong.' India is of the clear opinion that it takes any decision keeping in mind its energy needs and national interests. India has made it clear that it will buy oil from wherever it gets cheaper. India has refused to accept this pressure from America.

Broader issue: The trade deal is also stuck.

This tariff dispute is a part of a larger trade problem going on between India and America. A trade agreement (trade deal) is also stuck between the two countries, which is not being completed due to some demands of Trump.

Trump wants India to completely open its agriculture and dairy sector to American companies, but India is not agreeing to this to protect the interests of its farmers. India says that there can be no compromise on issues related to farmers.

Overall, this move of America has brought a new bitterness in the relations between the two countries. While America is pressurizing India as part of its geopolitical strategy, India has shown its resolve to remain firm on its independent foreign policy and national interests.