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The US President Donald Trump Announced a 25% Tariff on Indian Goods

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The US President Donald Trump announced a 25% tariff on Indian goods in several industries like electronics, textiles, and pharmaceuticals, and an unspecified penalty for the purchase of Russian oil and military equipment.

As announced by Trump, this decision will come into effect on Friday. He further shares on his Truth Social account that these are necessary to reverse a long-running trade imbalance.

He said that while India is our friend, we have not done a lot of business with the nation because of their high Tariffs. Further, Trump has been blaming India for purchasing military equipment and oil from Russia, which has powered the continuous war in Ukraine.

In response, the Indian government released a statement saying it had taken note of this decision and was working on its implications.

This new tariff will affect the trade policy between Trump and Prime Minister Narendra Modi. During the US president’s first term, the ties were warm but have encountered numerous issues over trade and immigration in the second term.

In February, Trump met Modi; the US president mentioned that India would now buy oil and natural gas from the US. He discussed his policies with reporters, but he did not comment when reporters asked about India’s decision to break the US tariff rate of at least 25%.

Trump’s Latest Statement

Hours after he announced 25% tariffs, Trump hit out at India and its trading partner Russia. He said he does not care about the trade dealings of India with Russia. The US does very little business with India due to its high tariffs, and with Russia, the US does almost no business.

Unlike other world leaders, the Indian PM Narendra Modi has not secured a reduction in the US President’s threatened tariff rate for his nation. Narendra Modi’s refusal to open India’s agricultural and dairy markets to the US may be away.  With this decision, there will be a risk of another showdown with numerous poor and powerful farmers.

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