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This Week in AsiaEconomics

Trump’s 50% tariff sows ‘total mistrust’ between US and India

Analysts say the US president’s move has little to do with economics and has injected unwanted ‘volatility’ into a once-stable relationship

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US President Donald Trump and India’s Prime Minister Narendra Modi. India has vowed to take “appropriate steps to protect national interest” in response to Trump’s tariffs. Photo: AFP
Junaid Kathju

An abrupt decision by US President Donald Trump to double tariffs on Indian goods has triggered what analysts describe as a “total mistrust” in bilateral ties and sent a “muddled strategic signal” about Washington’s foreign policy priorities.

The move – an additional 25‑percentage‑point tariff on Indian exports, doubling duties to 50 per cent – was issued in an executive order on Wednesday to penalise India’s continued purchase of Russian oil, which Washington argues is helping fund Moscow’s war in Ukraine.

“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” Trump said in the executive order.

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The additional tariff will take effect on August 27, while the original 25 per cent levy began on Thursday.

Employees work at a buttermilk packaging plant in Gandhinagar, India, on August 7. US President Donald Trump has abruptly doubled tariffs on Indian goods. Photo: AP
Employees work at a buttermilk packaging plant in Gandhinagar, India, on August 7. US President Donald Trump has abruptly doubled tariffs on Indian goods. Photo: AP

India’s Ministry of External Affairs called the tariffs “unfair, unjustified and unreasonable”, adding that New Delhi would take “appropriate steps to protect national interest”.

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Prime Minister Narendra Modi, in what was widely interpreted as an indirect swipe at Washington, declared on Thursday that India would not compromise the interests of its farmers, fishermen or dairy workers, even if it meant him “paying a heavy price”.
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