New Delhi, NFAPost: US President Donald Trump decision to sign an executive order to impose and additional 25% tariff on India, on the top of already imposed 25% has brought criticism from both government and industry bodies.
Earlier on Tuesday, Trump said that over the next 24 hours, the US will likely ‘very substantially’ raise tariffs on India for its purchase of Russian crude oil and refusal to stop. Donald Trump administration officials have accused India of helping ‘finance’ Russia’s war against Ukraine with its ongoing crude oil imports.
“India has not been a good trading partner, because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil,” he said in an interview with CNBC.
Donald Trump has brushed aside the reported offer of zero tariffs from India, saying that India’s crude oil trade with Russia is in focus. India on its part has remained defiant about its oil buys from Russia, saying it maintains the right to protect its national interests.
In a subtle message directed at US President Donald Trump, Prime Minister Narendra Modi said on Thursday that India will never compromise on the interests of its farmers and dairy sector, and declared he was prepared to bear a significant personal cost if necessary.
Addressing a global conference to mark the birth centenary of late agri-scientist M S Swaminathan, the architect of India’s Green Revolution, Narendra Modi said he would continue to stand by the country’s farmers and bear the brunt of America’s steepest tariffs.
“For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know I will have to pay a heavy price for it personally, and I am ready for it. India is ready for it,” he said.
The move is widely seen as a direct punishment for India’s refusal to toe the US line on buying Russian oil and military equipment, a sore point that has strained a strategic relationship that was on the up and up.
While calling India a “friend”, Trump warned of a “penalty” for its Moscow liaisons just days ago. On Wednesday, he delivered. The US President has also warned of “secondary sanctions” in the coming days.
