US News LIVE: Trump’s India Tariff Bullying Continues, Warns Of Escalating Tariffs On India | PM Modi
Following President Trump’s imposition of tariffs on India, trade tensions between the two countries have escalated significantly. The new measures, which add a 25% "penalty" on top of an existing 25% tariff, bring the total duty on many Indian exports to a staggering 50%. This action, which the U.S. government has linked to India’s continued purchase of Russian crude oil, has been met with strong resistance from New Delhi. Indian government officials have described the tariffs as "unfair, unjustified, and unreasonable," and Prime Minister Narendra Modi has publicly declared that India will not compromise on the interests of its farmers, dairy farmers, and fishermen, even if it means paying a "heavy price."
The tariffs are expected to have a notable, though likely manageable, impact on the Indian economy. According to analyses by firms like CreditSights, while the overall impact on India’s GDP may be limited, specific sectors heavily reliant on the U.S. market are facing significant headwinds. Industries such as textiles, jewelry, seafood, and auto components are particularly vulnerable, with some analysts warning that the high duties could severely erode their competitiveness and lead to a standstill. In response, the Indian government is reportedly developing a three-pronged strategy to support exporters, which includes customized schemes, the diversion of goods to other markets, and a push for domestic consumption of products that see a decline in export orders.
The ongoing trade dispute has also prompted a wider discussion within India about economic self-reliance and the country’s foreign policy. While some within the Indian government and business community are advocating for negotiation, there has also been a surge in public calls to boycott American brands and focus on building "Made in India" products. The situation has highlighted the delicate balance in U.S.-India relations, which, despite a shared strategic goal of countering China’s influence, are facing a period of considerable strain due to these economic and geopolitical differences.
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