US President Donald Trump’s administration has imposed a 50% tariff on imports from India as a punishment for buying Russian oil. This is reports Bloomberg.
The new tariffs, the highest in Asia, took effect on Wednesday, August 27 at 12:01 a.m. Washington time and effectively doubled the previous tariff of 25%.
The restrictions will cover more than 55% of all Indian exports to the US, the country’s largest market. Manufacturers of textiles, shoes and jewelry will be the most affected. At the same time, electronics and pharmaceuticals remain outside customs restrictions, allowing Apple to maintain its investment in new factories in India.
In Washington, they believe that the purchase of Russian oil contributes to the financing of the war that Vladimir Putin is waging against Ukraine. In response, India called the US move “unfair, unreasonable and unreasonable” and stated that it will continue to buy fuel based on economic interests.
“This will have a very big impact on Indian exporters as 50 percent tariffs are unacceptable to customers”, said managing director of Farida Shoes Pvt. Ltd. Israr Ahmed.
Citigroup estimates that the new tariffs could reduce India’s economic growth by 0.6 to 0.8 percentage points each year, as well as cause a drop in orders in labor-intensive industries and job losses.
