US President Donald Trump announced on Wednesday a 25% tariff on goods imported from India starting August 1 and an unspecified penalty for buying Russian weapons and oil.
Trump's decision dashes hopes of a limited trade agreement between the two countries, which had been under negotiation for several months.
Here are some reactions:
MADHAVI ARORA, ECONOMIST, EMKAY GLOBAL
"While the negotiations seem to have broken down, we don't think the trade-deal haggling between the two nations is over yet. We see it more from the lens of geopolitics than purely economics and see both sides striving to get the deal done, even as the power equations may change a bit in US favour."
R. ANEN BANERJEE, PARTNER OF ECONOMIC ADVISORY, PWC INDIA
"Higher tariffs for India compared to countries it competes with, for exports to the US, are going to be challenging.
However, the expectation is that the trade deal is likely to be finalised shortly, and hence the period of applicability of these higher tariffs could be short."
NILESH SHAH, MD KOTAK MAHINDRA AMC
"Despite the unpredictable policymaking of the US, the market was expecting a tariff deal to work out, as longer-term U.S.-India strategic interests are aligned.
Markets will hope for a 'TACO' trade if better senses prevail.
China is defying US/UN sanctions on Iran oil, Myanmar and Russia trade and North Korea support. Size and the competitiveness of the economy have their advantages.
I hope and pray that this unilateral imposition should accelerate Indian policy making to be growth supportive. Our biggest deterrence continues to remain GDP size and competitiveness."
AGNESHWAR SEN, TRADE POLICY LEADER, EY INDIA
"The decision to raise the US tariff to 25% on Indian exports is an unfortunate development, particularly given the strong strategic partnership that has been steadily built between India and the USA in recent years.
However, it's important to note that both countries remain positively engaged in active negotiations with the U.S. team expected in India later in August to finalise a comprehensive trade agreement."
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
