Trump’s doubling of tariffs hits India, damages relationship with US

6 comments

1. SS: U.S. President [Donald Trump’s](https://www.reuters.com/world/us/donald-trump/) doubling of [tariffs](https://www.reuters.com/business/tariffs/) on imports from India to as much as 50% took effect as scheduled on Wednesday, delivering a serious blow to ties between the two countries that became strategic partners after the turn of this century.A punitive 25% tariff imposed due to India’s purchases of Russian oil adds to Trump’s prior 25% tariff on many imports from the South Asian nation. It takes total duties to as high as 50% for goods such as garments, gems and jewellery, footwear, sporting goods, furniture and chemicals – among the highest imposed by the U.S. and on par with Brazil and China.

2. One of the few smart tariffs Trump has implemented because it actually has a moral and legal backing in weakening a foreign aggressor. It is also putting pressure on Europe indirectly to follow his negotiating position without Europe being able to openly retaliate. All the strategic industries are also exempt so the damage to the US is minimal. India has almost zero leverage so they will need to comply eventually or wait out the negotiations. Any talk of the relationship falling apart is just bluster. India has no other options having weakened the only other bloc themselves.

3. Trump will be gone in a few years. India will still be around.

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5. India has very high average tariffs and those should be lowered if it wants access to US investment and the US consumer market

   Complaining about buying Russian oil makes no sense however

6. One way to interpret this is US basically saying that it doesn’t need India. And, that’s likely true… US doesn’t need India at all. China is the only country that US can’t survive without. So, India would need to build leverage if it wants to be treated better. That’s the harsh reality…

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