© Insider Narrative. All Rights Reserved.
Trade

Trump’s 500% tariff push raises risk of India-US trade freeze

This post was originally published on this site.

US President Donald Trump’s backing for a Senate bill that would allow tariffs of up to 500 per cent on goods from countries buying Russian oil has raised the prospect of a near-freeze in trade between India and its largest export market, as New Delhi continues to absorb steep US duties imposed last year.

Trump last week gave the green light to the proposal, which targets any country that continues to buy Russian oil, petroleum products or uranium, a move seen as part of Washington’s effort to increase pressure on Moscow to reach an agreement to end its war with Ukraine.

The bill would authorise so-called secondary tariffs, penalising third countries that continue trading in Russian energy rather than sanctioning Russia alone, and would place India among the most exposed economies if enacted.

Advertisement

Nearly half of the import tariffs the US has already imposed were linked to India’s purchases of discounted Russian crude oil, helping push total duties on some Indian goods to 50 per cent.

US President Donald Trump has backed a Senate bill that would allow tariffs of up to 500 per cent on goods from countries buying Russian oil. Photo: TNS
US President Donald Trump has backed a Senate bill that would allow tariffs of up to 500 per cent on goods from countries buying Russian oil. Photo: TNS

“Indian exports to the US would no doubt face severe disruption if Trump’s proposed 500 per cent tariff bill is enacted,” Srikumar Menon, a former Indian diplomat, told This Week in Asia.

Advertisement