US-India Trade Fallout: Trump Imposes Steep Tariffs, Modi Cabinet to Respond
Trump’s punitive tariffs on India target Russian oil imports. Modi-led Cabinet meets to assess impact amid stalled trade talks.
US Punitive Tariffs Hit Indian Exports — Modi to Chair Crisis Meeting
The United States has imposed steep tariffs of up to 50% on Indian imports, escalating trade tensions between the two countries. The tariff hike comes as a punitive measure linked to India’s ongoing trade with Russia, particularly its purchase of Russian oil. This move marks a sharp turn in relations after a period of warming ties between Washington and New Delhi.
Prime Minister Narendra Modi is set to chair a high-level Cabinet meeting today at 1 pm to evaluate the fallout of these tariffs and consider support measures for Indian exporters affected by the US decision.
US President Donald Trump announced the tariffs earlier this week, citing the need to pressure Moscow into ceasing its military actions in Ukraine. Trump has ruled out any further trade negotiations with India until these tensions are resolved, leaving the future of bilateral talks uncertain.
When asked about the prospects of resumed discussions, Trump responded bluntly, "No, not until we get it resolved." It remains unclear whether this refers to the ongoing Ukraine conflict, India’s Russian oil imports, or broader trade disagreements.
The tariffs include an additional 25% punitive duty that will come into effect on August 27, following an earlier 25% tariff imposed last year. Trump had previously set deadlines for Russia to agree to a ceasefire—initially 50 days, later shortened to 12 days ending this Friday—warning of "secondary sanctions" against countries trading with Moscow.
India, the world’s second-largest buyer of Russian oil, now faces significant economic pressure from these US measures, complicating its diplomatic and trade balancing act amid the ongoing global crisis.
