Trump Tariffs Make India Most Heavily Taxed US Trading Partner: GTRI
Trump announced the planned implementation of an additional 25% tariff on top of the existing 25% as a 'penalty' on India for purchasing oil from Russia.
The Global Trade Research Initiative said on Wednesday that the 50% tariffs that President Donald Trump levied on India would make it the most heavily taxed country by the US, even higher than China.
Despite the fact that the US had initially planned to levy much higher tariffs on China, the tariffs were paused in the interim as Trump engaged in trade talks, the GTRI said in a statement.
The economic think tank said that it will only push the country to form deeper alliances with Russia and China, alienating it from the US.
The US president had initially announced 25% tariffs on India, expressing his disapproval of their trade practices, saying that the latter employed too many "trade barriers". These tariffs were to come into effect on Aug. 7.
The new tariffs place India among the most heavily taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, GTRI in a statement that
Trump announced the planned implementation of an additional 25% tariff on top of the existing 25% as a "penalty" on India for purchasing oil from Russia.
He condemned this economic practice citing Russia's invasion of and subsequent war with Ukraine. A conflict that he reportedly had found challenging to resolve.
The additional 25% will come into effect on Aug. 27.
The GTRI pointed out that in 2024, China's Russian oil imports stood at $62.6 billion, more than India’s $52.7 billion and yet the country faced no such penalties.
It further said that India could reconsider buying Russian oil if it is economically viable but should not abandon its existing arrangements with the country simply to satisfy Washington.
GTRI further said that India should remain calm and avoid retaliation for at least six months.
