At 50%, India now faces highest tariff among major US trade partners

US President Donald Trump on Wednesday signed an executive order hitting India with an additional 25 per cent tariff for buying Russian Federation oil.

With the latest hike, the total tarrif on Indian articles entering the US now stands at 50 per cent, the highest among the major US trade partners and on par with Brazil.

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Last month, Trump had announced 25 per cent reciprocal tarrifs on Indian imports to the US. While the first round of tariffs takes effect on Thursday, the additional 25 per cent will be implemented in 21 days – on August 27.

In the executive order he signed, Trump stated that articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent for importing Russian Federation oil.

The move has raised many eyebrows given the “friendship” between Prime Minister Narendra Modi and President Trump.

During his first term, Modi and Trump both held joint rallies in each others countries. Modi has also campaigned for Trump and gave “Abki baar, Trump sarkar” slogan in line with his own hit slogan – ‘Abki baar, Modi sarkar’.

The Indian government has called the US tariffs “unreasonable” and vowed to take “all actions necessary” to protect national interests.

The Opposition in India has also slammed the US tariffs as “economic blackmail”. Leader of Opposition Rahul Gandhi said the US is trying to bully India into an unfair trade deal.

Before India, Trump had also slapped 50 per cent tariffs on Brazil. Trump recently imposed additional 40 per cent tariffs on Brazil over the trial of former President Jair Bolsonaro. US earlier charged only 10 per cent tariffs on Brazilian imports, but now the total tariff rate stands at 50 per cent.

The United States imposes varying levels of tariffs on goods imported from its major trade partners.

However, countries like Syria (41 per cent), Laos and Myanmar (both 40 oer cent) are paying less tariffs on their imports to India than India and Brazil.

The other high-tariff nation is Switzerland. The country is subjected to pay 39 per cent. Canada, Serbia, and Iraq, face a 35 per cent tariff on their goods exported to the US, respectively.

China, despite being one of the largest importer of Russian Federation oil, sees a comparatively lower tariff rate of 30 per cent.