Trump's tariff war continues as US issues 50% levies on India
Donald Trump’s 50% tariffs on imported goods from India took effect today, following through on a warning made by the US president earlier this month.
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Mr Trump first threatened to impose the tariff in response to India purchasing cheap Russian oil.
The US President has launched a tariff war on most countries across the globe since re-entering office in January.
This latest move sees India face some of the highest tariffs of any country, alongside Brazil - which is also being punished for its decision to buy Russian income.
The US issued 25% tariffs on Indian goods earlier this month in an attempt to weaken the Russian economy and force a peace in Ukraine.
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“I don’t care what India does with Russia,” Trump claimed on Truth Social at the time.
“They can take their dead economies down together, for all I care.”
India has remained defiant in the face of Trump’s trade war, with prime minister Narendra Modi calling for people to buy Indian-made products to prop-up the economy.
“All of us should follow the mantra of buying only ‘Made in India’ goods,” Modi said on Tuesday.
“Pressure on us may increase [from the tariffs], but we will bear it.”
The effects of Trump’s tariffs are already being felt in India, experts warn.
The effects are already visible. The Federation of Indian Export Organisations (FIEO) reported textile and apparel manufacturers in Tirupur, Delhi, and Surat had already halted production due to “worsening cost competitiveness”.
“Indian goods have been rendered uncompetitive compared to competitors from China, Vietnam, Cambodia, the Philippines, and other south-east and south Asian countries,” said Federation of Indian Export Organisations president SC Ralhan.
One trade official told the Guardian: “Trump has blown it.
“The hard work between the two countries, which inherently did not trust each other but still managed to build a solid strategic relationship, is now at risk.
“It is going to take a long time to reboot, and it probably won’t happen until Trump is out.”
“At a working level, the countries must cooperate, but politically, neither can afford to appear weak.”