US-India Trade War Looms: Trump Threatens to Impose Increased Tariffs Within 24 Hours

New Delhi (The Uttam Hindu): US President Donald Trump has threatened to substantially raise tariffs on India within the next 24 hours, citing the country's purchases of Russian oil and military equipment. Trump claims India has the highest tariffs on US goods globally and hasn't been a good trading partner.

Key Developments:

 Tariff Increase: Trump announced a 25% tariff on Indian imports, which he now plans to raise substantially.

 Reason for Tariffs: The US president criticized India's trade policies, stating that India buys Russian oil and fuels the "war machine".

 India's Response: The Indian government called US threats "unjustified and unreasonable", emphasizing that imports from Russia are necessary for predictable   and affordable energy costs.

 Russia's Stance: Russia condemned Trump's remarks, viewing threats against its trade partners as hostile actions toward Moscow.

Global Reactions:

The International Monetary Fund (IMF) recently raised India's economic growth forecast to 6.4% for FY26 and FY27.

Despite Trump's tariff threats, India's economy shows resilience with a surge in new business registrations.

Trade Implications:

 The US imposed a 25% tariff on Indian goods due to India's high rates for US goods and close ties with Russia.

 India's Ministry of External Affairs pointed out the hypocrisy of the US and EU, which continue to import goods from Russia while pressuring India not to do so.