Trump Escalates US-India Tensions With 50% Tariff Hike on Indian Products
President Donald Trump has escalated tensions with India and Russia by increasing tariffs on Indian products to 50%, effective July 27, 2023. The move is seen as a US attempt to pressure Russia by targeting its trade relations with countries like India.
The US has accused India of posing an 'unusual and extraordinary threat' to its national security and foreign policy due to its oil imports from Russia. India's Ministry of External Affairs has responded that its energy purchases are driven by market factors and energy security, not politics.
The US has been firm in its stance against Russia, aiming to disrupt its economic relations, particularly with countries buying Russian energy. However, the main targets of US pressure have been European countries, such as Belgium, France, and Germany, which continue to import significant amounts of Russian LNG under long-term contracts.
The Indian government has deemed the US tariff increase 'extremely unfortunate' and has sent a stern warning to Washington. The increased tariffs, which will take effect within a 21-day period, come on top of a 25% increase announced in July 2022. The Indian government has labelled the US measures unjust, unjustified, and unreasonable.
The US tariff increase on India is part of its broader strategy to pressure Russia. However, the Indian government has made it clear that it will protect its national interests. The only way to ease tensions between the US and Russia, according to some analysts, is if Moscow ends its invasion of Ukraine.
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