Mr. Trump also slapped a penalty – an unspecified over and above the 25% on America’s “friend” for buying “a vast majority of their military equipment” and oil from Russia. India will pay a 25% tariff on goods exported to the United States from August 1, Donald Trump decreed on Truth Social, the social media network owned by the US President, on Wednesday. August 1 was the deadline Mr. Trump had set for reciprocal tariffs on dozens of countries, including India. Higher levies had been announced in April but were then reduced and paused to allow for talks. In a short, but characteristically loud, post this evening, the American President referred to India as “our friend” but complained of “far too high tariffs (that are) among the highest in the world”. He also complained about “strenuous and obnoxious non-monetary trade barriers”. And he also accused India and China of paying for Russia’s war – a now three-year-old military conflict Mr. Trump claimed he could end within 24 hours of being sworn in on January 20.
“Remember, while India is our friend… we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world. And they have the most strenuous and obnoxious non-monetary trade barriers of any country.” “Also, they have always bought a vast majority of their military equipment from Russia and are Russia’s largest buyer of energy… at a time when everyone wants Russia to stop the killing in Ukraine. India will, therefore, be paying a tariff of 25%, plus a penalty for the above, starting August 1…” Earlier today Mr. Trump, returning from his golf holiday to Scotland, told reporters, “India has been a good friend… but has charged basically more tariffs than almost any other country… you can’t do that.” The announcement comes as India and the US try to push a trade deal over the finishing line. US Trade Representative, Jamieson Greer said on Monday, the Trump administration needs more time for talks with India to gauge the country’s willingness to open its market more to American exports. Those talks have stuttered over the US’ demand for dairy and agriculture sector concessions. Those sectors are sensitive given the impact cheaper American products could have on Indian farmers.
Last week sources told NDTV that two countries are close to a ‘mini deal’ by September or October.
The ‘mini deal’, sources said, would look to avoid heavy tariffs on steel, automotive parts and aluminum, which are among India’s biggest exports to the United States. Last month, Mr. Trump – after the US announced an agreement with Indonesia, which saw tariffs on that country reduced to 19% – declared a trade deal with India is a matter of time. “We’re going to have access to India… you have to understand, we had no access to any of these countries. Our people couldn’t go in. We’re getting access now because of the tariffs.” Sources also dismissed speculation the US had set on India any conditions for a deal. Merchandise exports to the US rose 22.8% to US$ 25.51 billion in the April-June quarter this fiscal year, while imports rose 11.68% to US$ 12.86 billion.
Source : https://www.ndtv.com/world-news/donald-trump-announces-25-tariffs-plus-penalty-on-india-8984029
