According to analysts, this decision was made to create pressure on Russia and balance the trade.
What you should know
US President Donald Trump has announced a 25 percent tariff on goods imported from India. Expressing concern that India is buying large quantities of weapons and energy from Russia, Trump has also indicated that more steps will be taken in this regard.
Trump released his message through the social network "Truth Social" on Wednesday and said, "India is our friend, but it has adopted the highest customs duties and complex trade rules in the world, due to which the trade relationship has not been relatively strong." President Trump has also mentioned that India's closeness to Russia and its military and energy purchases are taken seriously in the context of the Ukraine war. "India and China are now Russia's biggest energy buyers, at a time when the world is asking Russia to stop its violence in Ukraine," Trump wrote.
However, he is yet to give clear details of the additional 'actions' he is expected to take on India. According to analysts, this decision was made to create pressure on Russia and balance the trade. President Trump has given Russian President Putin 10 days to end the war in Ukraine. He has also warned that more drastic measures will be taken if the course is not changed during that period.
There were extensive trade talks between India and America recently. However, there is no agreement between India's vigilance and strict demands of the Trump administration regarding the opening up of the agricultural and dairy sector . At present, most of the goods sent from India to the US are subject to a 10 percent import duty, which is now set to increase to 25 percent. In addition, President Trump is warning to impose new tariffs to maintain trade balance with other countries . He has expressed the possibility of imposing tariffs of up to 50 percent on Brazil.
