Trump imposes an additional rate of 25% on Indian goods, relationships reached new bass

The president of the United States, Donald Trump, issued an executive order on Wednesday that imposed an additional rate of 25% on Indian goods that cite the continuous imports of Russian oil in New Delhi, strongly increasing tensions between the two countries after commercial conversations collapsed.

The new measure increases tariffs on some Indian assets up to 50%, among the most steeps that any US trade partner face.
The measure is expected to reach the key Indian export sectors, including textiles, footwear and gems and jewels, and marks the most serious recession in relations between the United States and India since Trump returned to office in January.

It also occurs when the Indian prime minister, Narendra Modi, prepares for his first visit to China in more than seven years, suggesting a possible realignment in alliances such as ties with Washington Fray.

“India will take all the necessary measures to protect their national interests,” said the Ministry of Foreign Affairs of India in a statement, saying that it was “extremely unfortunate that the United States should choose to impose additional tariffs on India for the actions that several other countries are also taking their own national interest.”

He said that India imports were based on market factors and aimed at the energy security of their population of 1.4 billion. Commercial analysts warned that tariffs could severely interrupt Indian exports. The additional 25% tariff enters into force 21 days after August 7, according to the order.

“With such unpleasant tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, an Emkay Global economist.

Indian officials have privately recognized the growing pressure to return to the negotiating table. A potential commitment could imply a gradual reduction in Russian oil imports and the diversification of energy sources.

A senior Indian official said that New Delhi was blind for the sudden imposition of the new tax and the strong rate, since both countries continue to discuss commercial problems.

Trump's decision follows five rounds of non -conclusive commercial negotiations, which were arrested in the American demands of greater access to the markets of agriculture and the Indian dairy products. India's refusal to stop Russian oil purchases, which increased to a record of 52 billion dollars last year, finally triggered the tariff climb.

“Exports to the US. “Fiscal support calls are likely to intensify.”

Trump's executive order does not mention China, which also buys Russian oil. A White House official did not have immediate comments on whether an additional order that covers those purchases would be presented. The United States Secretary of the United States, Scott Besent, said last week that he warned Chinese officials who continued sanctioned Russian oil purchases would lead to large tariffs due to legislation in Congress, but told him that Beijing would protect their energy sovereignty.

The United States and China have participated in discussions about trade and tariffs, with the eye of extending a 90 -day tariff truce that will expire on August 12, when its bilateral tariffs again shoot at triple digits.