The United States, under President Donald Trump, is employing tariffs as a key strategy, specifically targeting India with a 50% levy on imports. This involves a new 25% tariff taking effect on August 27th, which adds to the existing 25% tariff implemented on August 6th. The cumulative impact results in a 50% tariff on Indian goods entering the U.S. market.
Trump’s second term has seen a significant shift away from traditional diplomacy, with a focus on altering established alliances. The imposition of a 50% tariff on Indian goods has prompted debate about its fairness. The underlying connection to the Russia-Ukraine conflict is also raising questions. Is India being unfairly targeted, and how prepared is India to respond?
India, previously a favored partner of the United States in Asia, is now experiencing strained trade relations due to Trump’s policies.
Trump’s ‘Make America Great Again’ agenda seems to be the driving force behind his trade decisions, causing him to disregard diplomatic considerations. The initial 25% tariff from August 6th has been supplemented by an executive order for an additional 25% tariff increase starting August 27th.
The executive order refers to the Russia-Ukraine conflict and cites the earlier Executive Order 14329 from August 6th. Trump’s tough approach towards India is seen as part of a larger strategy related to the war.
Despite attempts to mediate, progress has been limited. Trump has resorted to imposing a 50% tariff on India.
With India boasting the world’s largest market and the U.S. having a powerful economy, India is resisting pressure to concede.
PM Modi’s statements indicate India’s resolve against these tariffs. This is reinforced by reports from a German magazine, which state that a U.S. delegation sought negotiations in New Delhi, but India refused. Consequently, the U.S. has increased the tariff to 50%. India’s market is considered desirable by many nations.
By implementing such high tariffs, the U.S. might be jeopardizing its trade ties with India. In the fiscal year 2024-25, India was the U.S.’s largest trading partner, and Indian exports accounted for 2% of India’s GDP.
