New Delhi: India is bracing for the impact of new US tariffs, with experts warning of the economic and political consequences of an unprecedented duty on exports, marking one of the highest tariffs the US has ever imposed on a major trading partner.
In an unexpected move last week, US President Donald Trump imposed an additional 25 percent tariff on Indian goods, citing New Delhi’s purchases of Russian oil. His Deputy Chief of Staff Stephen Miller said the oil imports amounted to “financing” Russia’s invasion of Ukraine.
The move increased the total duty on Indian exports to 50 percent. While India’s Ministry of External Affairs vowed to “take all actions necessary to protect its national interests,” experts do not see much room for negotiations, as the tariff regime is set to take effect next month.
“It will have economic repercussions if things are not changed. Fifty percent is a lot, and it will affect us. Right now, there is an exemption for pharmaceuticals, but in other areas, there will be an impact,” Manoj Joshi, distinguished fellow at the Observer Research Foundation, told Arab News.
“We don’t have much leverage. We don’t have many options. The US is the one taking these actions, so unless and until the US withdraws these taxes, there is not much India can do.”
