US Issues Warning Over Potential Tariff Hike on India

Fast Summary

• The U.S. has warned of higher tariffs on Indian goods if President Donald Trump’s Alaska meeting with Russian President Vladimir Putin fails to resolve tensions over Russian oil imports.
• india currently faces a combined 50% duty on exports to the U.S., including a 25% “reciprocal” tariff and an additional 25% penalty linked to its purchase of discounted russian crude.
• Washington has hinted that these penalties could rise further if talks do not yield progress.
• India has called the tariffs “unjustified,” warning they threaten its substantial $87 billion trade relationship with the U.S.
• Indian exporters in sectors like electronics are already facing order cancellations due to trade disruptions.
• Trade issues between the two countries have worsened as late 2024, including disagreements over agricultural imports and technology transfer, stalling negotiations for a limited trade package.
• India argues its oil purchases are driven by economic needs, whereas the U.S. sees them as undermining Western sanctions on Moscow.

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