The Dow Jones (DJIA) is holding steady as President Trump’s 50% tariffs on imported goods from India are now in effect. Trump doubled India’s initial tariff rate of 25% as punishment for the country’s oil purchases from Russia, indirectly supporting attacks on Ukraine in the process.
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“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said in a Truth Social post earlier this month. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
New Tariff Threatens Progress in U.S.-India Partnership
India hasn’t issued any retaliatory tariffs so far, although Foreign Ministry spokesman Randhir Jaiswal said that the new rate is “unjustified and unreasonable.” The criticism comes as the U.S. ran a $45.7 billion goods trade deficit with India in 2024.
Furthermore, the heightened tariff casts a shadow over improving U.S.-India relations, threatening a partnership built on economic and geopolitical cooperation.
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