Former US President Donald Trump has signaled his intention to impose significant tariff increases on Indian goods in response to India’s continued purchase of Russian oil. Trump’s stance, articulated on Truth Social, reflects his disapproval of India’s trade practices, particularly the nation’s refusal to align with the US position on restricting oil imports from Russia. Trump’s criticism centers on the belief that India is not only buying substantial amounts of Russian oil but also reselling a portion of it on the open market for profit, seemingly disregarding the impact of the ongoing conflict in Ukraine. This announcement has spurred discussion within diplomatic and trade circles, though official responses from relevant authorities are still pending. Experts predict that the tariff hikes will negatively affect the supply chains, estimating a potential decline of nearly 30% in Indian exports to the US. Sectors reliant on labor, like garments, textiles, shrimp, jewelry, and engineering goods, are expected to be the most impacted. The imposition of increased tariffs would place India at a significant disadvantage compared to its regional counterparts, such as Vietnam, Bangladesh, and Mexico, which benefit from lower or zero duties on their exports.
