The additional 25 per cent tariffs on India slapped by US President Donald Trump earlier this month will start applying from today, August 27. This has taken the cumulative tariff on Indian imports to 50%. Trump Imposes 50% Tariff on India for Russian Oil Purchases, Deemed "Unfair, Unjustified, and Unreasonable" by New Delhi. A draft notice on the implementation was issued by the US department of Homeland Security. Trump has imposed steep tariffs on India with the aim of indirectly pressuring Russian President Vladimir Putin to end the war in Ukraine. His strategy is to curb Moscow’s oil trade, which is a major source of revenue for Russia, in hopes that this economic pressure will force Putin to reconsider continuing the conflict. Now, will there be more notices or notifications before the implementation? What are the key updates on US' Tariff hike? Read below:
Will India, US Issue Any Word On Implementation?
- No, India and the US are not necessarily required to issue a notification or order regarding the US tariff hike on Indian goods. A public notice was issued on August 26 announcing an additional 25 per cent tariff on Indian products. The notice specifies that these increased levies will apply to Indian goods entering the U.S. market for consumption on or after 12:01 a.m. They will also affect goods withdrawn from U.S. warehouses for use after that time. The hike, according to the US, is the penalty for New Delhi’s continued buying of Russian oil, which Trump said is funding Moscow’s war in Ukraine – a charge strongly rejected by the world’s 4th largest economy.
- Indian exporters are preparing for a drop in orders from the United States after it decided to impose 50% tariffs. To support them, the government may provide financial assistance and encourage exporters to explore alternative markets such as China, Latin America, and the Middle East. An official disclosed this to Reuters on the condition of anonymity.
- Prime Minister Narendra Modi, while speaking in Ahmedabad on Monday, addressed the issue of US tariffs and said that India would not bow to external pressure. He assured the public that the welfare of farmers, cattle rearers, and small-scale industries would continue to remain his top priority.
- During another speech in Gujarat on Tuesday, Prime Minister Narendra Modi once again stressed the importance of going “swadeshi” or self-reliant. He explained that his idea of swadeshi is simple: it does not matter whether the money comes in dollars, pounds, or from any other country—what truly matters is that the hard work and effort behind it should be Indian.
- Some Indian products have been exempted from the 50% US tariff. These include goods made of iron, steel, aluminium, and copper, along with passenger vehicles, light trucks, and auto components. India’s pharmaceutical products, as well as electronics such as chips, mobile phones, and tablets, are also not covered by the tariff.
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