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Boston Globe
2 hours ago
- Boston Globe
Trump raises tariffs on India to 50 percent
Advertisement 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' he posted on his social media platform Monday. 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.' US companies have scrambled to avoid the new costs of import taxes. Apple on Wednesday afternoon announced a fresh $100 billion investment in domestic manufacturing in an attempt to divert production of critical components for data centers and consumer electronics away from countries targeted by Trump's trade war. The company had already shifted some production of iPhones destined for US markets from China to India. Advertisement Trump has long held that imposing taxes on trade will improve the nation's grim finances and rebalance relationships with foreign nations that he says are taking advantage of the US. He has also used tariffs in recent weeks to try to accomplish foreign policy objectives, dangling threats of new trade barriers to stop skirmishes between Thailand and Cambodia. But consumers often ultimately pay for tariffs through higher prices, even if some of the costs are spread throughout the supply chain. And there are many nations with which the US must trade to secure goods that can't be made or grown at home. Some economists worry that Trump's new trade policy could cause the economy to shrink and rupture certain alliances that domestic producers have relied upon to manufacture cheap goods. Randhir Jaiswal, a spokesman for India's Ministry of External Affairs, wrote in a social media post Wednesday that it was 'extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.' He added that India believes 'these actions are unfair, unjustified and unreasonable,' and that purchases of Russian oil were 'based on market factors.' India is the United States' 12th-largest trading partner; the two countries have exchanged $78.4 billion in goods from Jan. 1 through June, according to federal data. India also has an informal economic alliance with Russia as part of the BRICS bloc of nations, a group that also includes Brazil, China, and South Africa. Those nations have brought some of Trump's most difficult negotiations over tariffs. The White House has announced frameworks of trade deals with close to a dozen of the country's largest commercial partners. But the administration does not have an arrangement with China, instead extending a temporary truce as talks continue. And Trump imposed 50 percent tariffs on Brazil over the country's anti-corruption investigation into former president Jair Bolsonaro, a close ally of Trump's. Advertisement Trump and Indian Prime Minister Nerendra Modi appeared in recent weeks to be close to their own agreement, but divisions remain on barriers surrounding US agricultural and dairy exports and India's relationship with Russia. New Delhi watchers had hoped that Trump's relationship with Modi would clear remaining obstacles to that deal. Trump in his first term hosted a massive 'Howdy Modi!' rally for the Indian leader in Houston. Modi in 2020 reciprocated with a 'Namaste Trump' rally in Ahmedabad, India. Under former president Joe Biden, the US government was more economically lenient toward India than other nations that maintained ties with Russia after the invasion of Ukraine, and the two nations have worked closely to counter Chinese influence in parts of Asia. Modi was one of the first foreign leaders to visit Trump, announcing plans for new defense and energy partnerships. In June, Trump accepted an invitation from the prime minister to visit India for the next summit of Quad leaders, a four-nation security group comprising the United States, India, Australia, and Japan. But recently Trump has sought deeper ties with Pakistan, India's top rival, even attempting — via social media — to broker a solution between the two countries on the long-disputed Kashmir region. 'The good news is we do have some level of reservoir of goodwill that we've built up, but we are spending that rapidly right now, with the day-to-day antagonism of India, which appears to be focused mainly on getting this trade agreement across the finish line,' said Richard Rossow, the chair on India and emerging Asia economics at the Center for Strategic and International Studies. Advertisement Trump's stance on Russian oil puts New Delhi in a predicament. India has been the top buyer of Russian crude oil since 2023, importing 89 million tons last year, according to data compiled by the shipping data tracking company Kpler. Russian crude accounts for 38 percent of India's oil imports, Kpler data showed. 'I don't care what India does with Russia,' Trump posted on Truth Social last week. 'They can take their dead economies down together, for all I care.' India also receives 36 percent of its military arms imports from Russia, according to the Stockholm International Peace Research Institute, though that dipped from 72 percent between 2010 to 2014.
Epoch Times
3 hours ago
- Epoch Times
What to Know About India's Purchases of Russian Oil
President Donald Trump issued an executive order on Aug. 6, raising the tariff rate on Indian goods entering the United States to 50 percent. Trump pointed to India's continued purchases of Russian crude oil as justification for the significant increase in levies on the nation's exports.
Yahoo
5 hours ago
- Yahoo
Trump to put additional 25% import taxes on India, bringing combined tariffs to 50%
WASHINGTON (AP) — President Donald Trump signed an executive order Wednesday to place an additional 25% tariff on India for its purchases of Russian oil, bringing the combined tariff imposed by the United States on its ally to 50%. The tariffs would go into effect 21 days after the signing of the order, meaning that both India and Russia might have time to negotiate with the administration on the import taxes. Trump's moves could scramble the economic trajectory of India, which until recently was seen as an alternative to China by American companies looking to relocate their manufacturing. China also buys oil from Russia, but it was not included in the order signed by the Republican president. As part of a negotiating period with Beijing, Trump has placed 30% tariffs on goods from China, a rate that is smaller than the combined import taxes with which he has threatened New Delhi. Trump had previewed for reporters on Tuesday that the tariffs would be coming, saying the U.S. had a meeting with Russia on Wednesday as the Trump administration tries to end the war in Ukraine. Trump had not spoke about the new tariffs Wednesday, but he posted on Truth Social that special envoy Steve Witkoff's talks with Russian leader Vladimir Putin were 'highly productive." The Indian government on Wednesday called the additional tariffs 'unfortunate." 'We reiterate that these actions are unfair, unjustified and unreasonable,' Foreign Ministry spokesman Randhir Jaiswal said in a statement, adding that India would take all actions necessary to protect its interests. Jaiswal said India has already made its stand clear that the country's imports were based on market factors and were part of an overall objective of ensuring energy security for its 1.4 billion people. Ajay Srivastava, a former Indian trade official, said the latest tariff places the country among the most heavily taxed U.S. trading partners and far above rivals such as China, Vietnam and Bangladesh. 'The tariffs are expected to make Indian goods far costlier with the potential to cut exports by around 40%-50% to the U.S.,' he said. Srivastava said Trump's decision was 'hypocritical' because China bought more Russian oil than India did last year. 'Washington avoids targeting Beijing because of China's leverage over critical minerals which are vital for U.S. defense and technology,' he said. In 2024, the U.S. ran a $45.8 billion trade deficit in goods with India, meaning America imported more from India than it exported, according to the U.S. Census Bureau. American consumers and businesses buy pharmaceutical drugs, precious stones and textiles and apparel from India, among other goods. At the world's largest country, India represented a way for the U.S. to counter China's influence in Asia. But India has not supported the Ukraine-related sanctions by the U.S. and its allies on Moscow even as India's leaders have maintained that they want peace. The U.S. and China are currently in negotiations on trade, with Washington imposing a 30% tariff on Chinese goods and facing a 10% retaliatory tax from Beijing on American products. The planned tariffs on India contradict past efforts by the Biden administration and other nations in the Group of Seven leading industrialized nations that encouraged India to buy cheap Russian oil through a price cap imposed in 2022. The nations collectively capped Russian oil a $60 per barrel at a time when prices in the market were meaningfully higher, The intent was to deprive the Kremlin of revenue to fund its war in Ukraine, forcing the Russian government either to sell its oil at a discount or divert money for a costly alternative shipping network. The price cap was rolled out to equal parts skepticism and hopefulness that the policy would stave off Russian President Vladimir Putin's invasion of Ukraine. The cap has required shipping and insurance companies to refuse to handle oil shipments above the cap, though Russia has been able to evade the cap by shipping oil on a 'shadow fleet' of old vessels using insurers and trading companies located in countries that are not enforcing sanctions. But oil prices have fallen with a barrel trading on Wednesday morning at $65.84, up 1% on the day. __ Roy reported from New Delhi. Solve the daily Crossword
