5 days ago
Ties hit new low as Trump imposes extra 25% tariff on Indian goods
US President Donald Trump on Wednesday imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock.
The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50% — among the highest levied on any US trading partner.
Trump's executive order imposing the extra tariff did not mention China, which also imports Russian oil, but later said he could announce similar further tariffs on Chinese goods.
'It may happen ... I can't tell you yet,' Trump told reporters. 'We did it with India. We're doing it probably with a couple of others. One of them could be China.'
Analysts said Trump's move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India's access to its largest export market, where shipments totalled nearly $87bn (R1.54-trillion) in 2024, hitting sectors like textiles, footwear, gems and jewellery.
It also marks a shift from the warm ties seen during Trump and Modi's February meeting, they said, pointing out Trump's recent remarks calling India's economy 'dead', its trade barriers 'obnoxious' and accusing the country of profiting from cheap Russian oil while ignoring the killings of Ukrainians in Russia's three-and-a-half-year-old invasion of its neighbour.
