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WASHINGTON: The United States will impose a 25 percent tariff on goods from India, plus an additional import tax because of India’s purchasing of Russian oil, President Donald Trump said Wednesday.

India “is our friend,” Trump said on his Truth Social platform, but its tariffs “are far too high” on US products.

The Republican president added India buys military equipment and oil from Russia, enabling Moscow’s war in Ukraine. As a result, he intends to charge an additional “penalty” starting on Friday as part of the launch of his administration’s revised tariffs on multiple countries.

The Indian government said Wednesday it’s studying the implications of Trump’s tariffs announcement.

India and the US have been engaged in negotiations on concluding a “fair, balanced and mutually beneficial” bilateral trade agreement over the last few months, and New Delhi remains committed to that objective, India’s Trade Ministry said in a statement.

Trump’s view on tariffs

Trump’s announcement comes after a slew of negotiated trade frameworks with the European Union, Japan, the Philippines and Indonesia — all of which he said would open markets for American goods while enabling the US to raise tax rates on imports. The president views tariff revenues as a way to help offset the budget deficit increases tied to his recent income tax cuts and generate more domestic factory jobs.

While Trump has effectively wielded tariffs as a cudgel to reset the terms of trade, the economic impact is uncertain as most economists expect a slowdown in US growth and greater inflationary pressures as some of the costs of the taxes are passed along to domestic businesses and consumers.

There’s also the possibility of more tariffs coming on trade partners with Russia as well as on pharmaceutical drugs and computer chips.

Kevin Hassett, director of the White House National Economic Council, said Trump and US Trade Representative Jamieson Greer would announce the Russia-related tariff rates on India at a later date.

Tariffs face European pushback

Trump’s approach of putting a 15 percent tariff on America’s long-standing allies in the EU is also generating pushback, possibly causing European partners as well as Canada to seek alternatives to US leadership on the world stage.

French President Emmanuel Macron said Wednesday in the aftermath of the trade framework that Europe “does not see itself sufficiently” as a global power, saying in a cabinet meeting that negotiations with the US will continue as the agreement gets formalized.

“To be free, you have to be feared,” Macron said. “We have not been feared enough. There is a greater urgency than ever to accelerate the European agenda for sovereignty and competitiveness.”

Seeking a deeper parternship with India

Washington has long sought to develop a deeper partnership with New Delhi, which is seen as a bulwark against China. Indian Prime Minister Narendra Modi has established a good working relationship with Trump, and the two leaders are likely to further boost cooperation between their countries.

The Census Bureau reported that the US ran a $45.8 billion trade imbalance in goods with India
last year, meaning it imported more than it exported.

At a population exceeding 1.4 billion people, India is the world’s largest country and a possible geopolitical counterbalance to China. India and Russia have close relations, and New Delhi has not supported Western sanctions on Moscow over its war in Ukraine.

The new tariffs could put India at a disadvantage in the US market relative to Vietnam, Bangladesh and, possibly, China, said Ajay Sahai, director general of the Federation of Indian Export Organizations.

“We are back to square one as Trump hasn’t spelled out what the penalties would be in addition to the tariff,” Sahai said. “The demand for Indian goods is bound to be hit.”

The new tariffs on India could complicate its goal of doubling bilateral trade with the US to $500 billion by 2030. The two countries have had five rounds of negotiations for a bilateral trade agreement. While US has been seeking greater market access and zero tariff on almost all its exports, India has expressed reservations on throwing open sectors such as agriculture and dairy, which employ a bulk of the country’s population for livelihood, Indian officials said.

When Trump in February met with Modi, the US president said that India would start buying American oil and natural gas.

Trump discussed his policies on trade and tariffs with reporters accompanying him Tuesday on the flight home following a five-day visit to Scotland. He declined to comment then when asked about reports that India was bracing for a US tariff rate of at least 25 percent, saying, “We’re going to see.”

Trump also said the outlines of a trade framework with India had not yet been finalized. Once back at the White House on Tuesday, Trump indicated that there were no plans to announce new tariff rates on Wednesday, a claim that turned out to be inaccurate.

LONDON: The co-founder of a pro-Palestinian campaign group on Wednesday won her bid to bring a legal challenge against the British government’s decision to ban the group under anti-terrorism laws.
Huda Ammori, who helped found Palestine Action in 2020, asked London’s High Court to give the go-ahead for a full challenge to the group’s proscription, which was made on the grounds it committed or participated in acts of terrorism.
Palestine Action has increasingly targeted Israel-linked companies in Britain, often spraying red paint, blocking entrances or damaging equipment. It accuses Britain’s government of complicity in what it says are Israeli war crimes in
Gaza.
Earlier this month, the High Court refused Ammori’s application to pause the ban and, following an unsuccessful last-ditch appeal, Palestine Action’s proscription came into effect just after midnight on July 5.
Proscription makes it a crime to be a member of the group, carrying a maximum sentence of 14 years in prison.
Judge Martin Chamberlain granted permission for Ammori to bring a judicial review, saying her case that proscription amounted to a disproportionate interference with her and others’ right to freedom of expression was “reasonably arguable.”
Dozens of people
have been arrested
for holding placards purportedly supporting the group since the ban, and Ammori’s lawyers say people expressing support for the Palestinian cause have also been subject to increased scrutiny from police.
However, Britain’s interior minister Yvette Cooper has said violence and criminal damage have no place in legitimate protest and that Palestine Action’s activities – including breaking into a military base and
damaging two planes – justify proscription.
Israel has repeatedly denied committing abuses in its war in Gaza, which began after Palestinian militant group Hamas attacked Israel from Gaza on October 7, 2023.