US tariffs on Indian goods reach 50%
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The news: The US has hit India with punitive tariffs over its purchases of Russian oil, raising US import duties on the country to among the highest in the world - on par with Brazil and China.
The numbers: The additional 25% penalty tariff came into effect at 12:01 ET on Wednesday, imposed on top of the 25% ‘reciprocal’ trade tariff on Indian goods shipped to the US. Total duties for goods such as garments, gems and jewellery, footwear, sporting goods, furniture and chemicals will climb to 50%, with a three-week exemption for Indian goods that were already loaded onto a vessel and in transit to the US before the deadline.
Steel, aluminium and derivative products, passenger vehicles, copper and other goods subject to separate tariffs of up to 50% were exempted from the new levies.
The context: US President Donald Trump announced the punitive tariffs over the country’s purchasing of Russian energy earlier this month, after talks between Washington and Moscow failed to achieve a breakthrough.
At the time, a factsheet released by the White House explained that India’s importation of Russian Federation oil undermines US efforts to counter Russia’s harmful activities and India’s profitable reselling of Russian oil further enables the Russian Federation’s economy to fund its aggression.
India has called the oil-based levies unfair and continued to buy Russian crude oil despite the threat of higher tariffs from the US, albeit at lower levels.
