"Unfair, Unjustified, Unreasonable": Centre On Trump's 50% Tariff On India

India has made it clear that it stands firm on its national interests after US President Donald Trump's move to impose another 25 per cent tariff over the import of Russian oil. In a calm pushback, New Delhi said the extra tariff was "unfair, unjustified and unreasonable" and declared that it would "take all actions necessary to protect national interests".

The latest "penalty" for Russian imports takes total duties on Indian exports to the US to 50 per cent - 20 per cent more than the tariff on China and 31 per cent more than on Pakistan. The tariff will take effect in 21 days.

The Indian Response

Within hours, the foreign ministry, in a statement, said the United States "has in recent days targeted India's oil imports from Russia".
"We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest".

"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the statement added in no uncertain terms.

What India Said Earlier

Earlier this month, as the US announced a 25 per cent tariff on India, the government had said it was studying the implications of Trump's announcements and remained dedicated to securing a fair-trade deal.
But soon after, the foreign ministry, in a statement, pointed out that India was not alone in importing Russian goods and when it began importing from Russia as the conflict with Ukraine started, the US "actively encouraged such imports". 

"Europe-Russia trade includes not just energy but also fertilisers, mining products, chemicals, iron and steel and machinery and transport equipment. Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals," the ministry had said. 

"In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," New Delhi had added.

Donald Trump Unmoved

President Trump, however, has taken no action against any European nation or China of trade with Russia and has continued to be vocal about India. "India, Russia can take their dead economies down together", he said last week and finally warned yesterday about another tariff hike.

"India has not been a good trading partner... we settled on 25 percent... but I think I'm going to raise that substantially over the next 24 hours because they're buying Russian oil," he had told a US broadcaster.

Today's Hike 

In his interview with broadcaster CNBC, Donald Trump had said that India was "buying Russian oil and fuelling the war machine. And if they are going to do that, I'm not going to be happy".

In the executive order he signed today hiking tariff, President Trump said the "actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. To deal with the national emergency... I determine it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil".

Which Sectors May Take A Hit

The 50 per cent total tariff imposed on India is the highest in Asia and would mean much higher cost for Indian exports to the US including textiles, auto components, tyres, chemicals, agrochemicals, and cut & polished diamonds. The trade imbalance between India and the US could widen and there could also be a possible shift or reconsideration in the supply chain.