WashingtonDue to India’s purchases, President Donald Trump announced on Wednesday that the United States would levy a 25% tariff on Indian goods in addition to an additional import tax.
Trump claimed on his Truth Social platform that India is our buddy, but its taxes on American goods are excessively high.
Suggested Videos
added India supports Moscow’s conflict in Ukraine by purchasing energy and military hardware from Russia. Therefore, as part of the commencement of his administration, he plans to impose an extra penalty beginning on Friday.
Despite the tariffs starting in a few days, Trump told reporters on Wednesday that the two nations were still in the midst of trade talks.
Now, we’re speaking with India,” the president declared. “We’ll wait and see.
On Wednesday, the Indian government announced that it is researching the effects of Trump’s tariff announcement.
Over the past few months, India and the United States have been negotiating to reach a fair, balanced, and mutually advantageous bilateral trade deal, and New Delhi is still dedicated to achieving that goal, the country’s commerce ministry said in a statement.
In response to their criminal pursuit of former President Jair Bolsonaro and their treatment of American social media companies, Trump signed separate orders on Wednesday to at least 50% and to explain his actions. Additionally, Trump signed an order stating that the administration now had the mechanisms in place to plug the tariff loophole that allowed duty-free entry into the United States of products under $800, primarily from China.
Trump also announced agreements with Pakistan and South Korea, which had been subject to 25% tariffs beginning Friday. In addition to requiring South Korea to purchase $100 billion worth of energy resources from the United States and to contribute $350 billion to the United States for investments owned and controlled by the United States, which I, as president, have chosen, the South Korea agreement will impose a 15% tariff on goods coming from that country, Trump stated.
The agreement with Pakistan includes the development of its oil reserves. He was informed on trade negotiations with China by Treasury Secretary Scott Bessent in the meanwhile.
Trump’s tariff stance
Trump made his declaration after claiming that the European Union, Japan, the Philippines, and Indonesia would allow the United States to increase import taxes while opening markets for American goods. The president sees tariff collections as a means of creating more jobs in domestic factories and helping to balance the rise in the budget deficit linked to his recent policies.
Trump has successfully used tariffs as a tool to reset, but the economic effects are unclear because most analysts predict a slowdown in U.S. growth and increased inflationary pressures as part of the tax costs are transferred to American consumers and companies.
Additional duties on Russian trading partners, pharmaceutical products, and computer chips could possibly be on the horizon.
Kevin Hassett, director of the White House National Economic Council, said Trump and U.S. Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date.
Europeans are opposing tariffs.
Trump’s strategy of imposing a 15% tariff on America’s longstanding allies in the EU is also drawing criticism, which could prompt European allies and Canada to look for alternatives to American leadership on the international scene.
Following the trade framework, French President Emmanuel Macron stated in a cabinet meeting on Wednesday that Europe does not consider itself a strong enough global power and that talks with the United States will continue as the agreement is formalized.
According to Macron, you must be feared in order to be free. There hasn’t been enough fear of us. Accelerating the European agenda for competitiveness and sovereignty is more important than ever.
Seeking to strengthen ties with India
As a defense against China, Washington has long aimed to strengthen its relationship with New Delhi.
Trump and Indian Prime Minister Narendra Modi have developed a cordial working relationship, and the two leaders are probably going to increase their countries’ cooperation even more. The U.S. president declared in February that India will begin purchasing American natural gas and oil.
India’s objective of tripling bilateral trade with the United States to $500 billion by 2030 may become more difficult as a result of the increased tariffs. Negotiations for a bilateral trade deal between the two nations have gone through five rounds. India has voiced concerns about opening up industries like agriculture and dairy, which provide a living for the majority of the nation’s workforce, while the United States has been pushing for further market access and zero tariffs on nearly all of its exports, according to Indian officials.
According to the Census Bureau, the United States imported more goods than it exported last year, resulting in a $45.8 billion trade imbalance.
India, the largest country in the world with a population of over 1.4 billion, might be a geopolitical counterbalance to China. Russia and India have opposed Western sanctions on Moscow for its war in Ukraine, and New Delhi has not.
In comparison to Vietnam, Bangladesh, and potentially China, the additional tariffs may disadvantage India in the U.S. market, according to Ajay Sahai, director general of the Federation of Indian Export Organizations.
Trump hasn’t specified the penalties that would be imposed in addition to the tariff, so we are starting over,” Sahai added. There will inevitably be a decline in the demand for Indian goods.
___
Roy provided updates from New Delhi. Associated Press writers Samuel Petrequin in Paris, Darlene Superville and Seung Min Kim in Washington contributed to this report.
