Trump announces 25% tariff on India and unspecified penalties for buying Russian oil

WASHINGTON AP President Donald Trump commented Wednesday that he will impose a tariff on goods from India plus an additional import tax because of India s purchasing of Russian oil India is our friend Trump announced on his Truth Social platform but its tariffs are far too high on U S products The Republican president added that India buys military equipment and oil from Russia which he noted has enabled the war in Ukraine As a impact he intends to charge an additional penalty starting on Friday as part of the launch of his administration s revised tariffs on multiple countries The new tariffs could put India at a disadvantage in the U S domain relative to Vietnam Bangladesh and possibly China explained Ajay Sahai director general of the Federation of Indian Export Organisations We are back to square one as Trump hasn t spelled out what the penalties would be in addition to the tariff Sahai revealed The demand for Indian goods is bound to be hit The announcement comes after a slew of negotiated pact frameworks with the European Union Japan the Philippines and Indonesia all of which Trump noted would open markets for American goods while enabling the U S to raise tax rates on imports The president views tariff revenues as a way to help offset the budget deficit increases tied to his latest income tax cuts and generate more domestic factory jobs While Trump has effectively wielded tariffs as a cudgel to reset the terms of contract the economic impact is uncertain as bulk economists expect a slowdown in U S expansion and greater inflationary pressures as specific of the costs of the taxes are passed along to domestic businesses and consumers There is also the possibility of more tariffs coming on exchange partners with Russia as well as on pharmaceutical drugs and computer chips Kevin Hassett director of the White House National Economic Council recounted reporter Wednesday that Trump and U S Exchange Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date Trump s approach of putting a tariff on America s long-standing allies in the EU is also generating pushback possibly causing European partners as well as Canada to seek alternatives to U S leadership on the world stage French President Emmanuel Macron disclosed Wednesday in the aftermath of the arrangement framework that Europe does not see itself sufficiently as a global power saying in a cabinet meeting that negotiations with the U S will continue as the agreement gets formalized To be free you have to be feared Macron noted We have not been feared enough There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness Washington has long sought to develop a deeper partnership with New Delhi which is seen as a bulwark against China Indian Prime Minister Narendra Modi has established a good working relationship with Trump and the two leaders are likely to further boost cooperation between their countries The Census Bureau published that the U S ran a billion arrangement imbalance in goods with India last year meaning it imported more than it exported At a population exceeding billion people India is the world s largest country and a viable geopolitical counterbalance to China India and Russia have close relations and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine The new tariffs on India could complicate its goal of doubling bilateral pact with the U S to billion by The two countries have had five rounds of negotiations for a bilateral bargain agreement While U S has been seeking greater area access and zero tariff on almost all its exports India has expressed reservations on throwing open sectors such as agriculture and dairy which employ a bulk of the country s population for livelihood Indian agents mentioned When Trump in February met with Modi the U S president revealed that India would start buying American oil and natural gas Trump discussed his policies on business and tariffs with reporters accompanying him Tuesday on the flight home following a five-day visit to Scotland He declined to comment then when inquired about reports that India was bracing for a U S tariff rate of at least saying We re going to see Trump also stated the outlines of a agreement framework with India had not yet been finalized Once back at the White House on Tuesday Trump indicated that there were no plans to announce new tariff rates on Wednesday a claim that turned out to be inaccurate Roy released from New Delhi Associated Press writers Samuel Petrequin in Paris and Darlene Superville contributed to this overview Source