Trump imposes additional 25% tariff on India, total tariff now at 50%

India Today

US President Donald Trump signed an executive order imposing an additional 25% tariff on India. This new tariff is in response to India's continued purchase of Russian oil. India already faced a 25% tariff, bringing the total to 50%. T

Transcript

00:00All right, viewers, this is huge.

00:02President Donald Trump has just signed an executive order

00:05imposing an additional 25% tariff on India

00:09in response to its continued purchase of Russian oil.

00:13That is massive news coming in from the United States of America.

00:19Trump has slapped an extra 25% tariff on India.

00:22What is the breakup of that, viewers?

00:24Please do keep in mind all of that happens in the backdrop of India

00:28already facing a 25% tariff.

00:32And this is an additional 25% tariff that President Donald Trump signed

00:38as an executive order imposing an additional 25%

00:42in response to India's continued purchase of Russian oil.

00:47So clearly, it's very, very clear now and out in the open

00:52that it is really not trade one is looking at.

00:55This is geopolitical pressure on India to make a geopolitical choice.

01:00The latest that is coming in, and we're going to quickly play that out

01:04for our viewers.

01:06Big news break.

01:08President Trump has just signed an executive order

01:11imposing an additional 25% tariff on India

01:16in response to its continued purchase of Russian oil.

01:21And all of this information disseminated by the President of the United States

01:27through a post on the social media platform, X.

01:32But the implication of that is huge.

01:34The trust deficit between America and India at an all-time low.

01:39I want to quickly cut across to my colleague, Siddharth Zarabi.

01:42Siddharth, you know, this war now only escalating between India

01:47and the United States of America.

01:50One thing now, clear, this is not about trade.

01:53This is clear pressure to make a geopolitical choice.

01:57Absolutely, and in fact, as we are breaking on our screens,

02:02President Trump has signed an executive order

02:05which adds another 25% to the existing 25%.

02:11Remember, this is supposed to come into effect from the 7th of August

02:16and clearly now doubling this tariff rate.

02:21The big question, is this the penalty that he had promised

02:25as far as his belief that we are buying crude oil from Russia

02:32and financing Russia's war on Ukraine?

02:35We don't know the answer to that.

02:37But for now, it's very clear that 25% has become 50%

02:41and that clearly puts us at the upper end of his tariff bargain

02:46and that he is trying to force down the throat of many economies

02:51and countries in the world.

02:53And this additional 25% really is going to definitely,

02:58Preeti, as you said, harden positions

03:01because this is certainly not the act of a friend.

03:05Neither is it an act of someone who understands the depth

03:09and the dynamics of the India-US trade relationship.

03:13And therefore, this 25% additionally on goods

03:18will reduce the room for negotiations and conversations

03:24between India and the United States.

03:28We'll, of course, have to wait for how the government of India responds to this.

03:32I imagine that response will also be forthcoming very shortly.

03:36Sadat, would you stay with me because this is big, big news viewers

03:39and all of this is when President Trump had threatened

03:42to substantially raise tariffs in 24 hours

03:45if India did not stop purchasing oil from Russia.

03:49So he's clearly pulled the trigger.

03:50We are now staring at a 50% tariff.

03:52My colleague Rohit is also joining us from Washington

03:55with the very latest.

03:57Rohit, all of this also in the backdrop

03:58because it hasn't come devoid of criticism

04:01in the United States of America itself

04:04because you've had Nikki Haley who came out and said that,

04:06listen, China buys oil from Russia, China buys oil from Iran,

04:11yet you've given a tariff pause to China

04:14and you're ruining your relationship with India.

04:16Yeah, and she did say that,

04:19but she also asked and cautioned India

04:20not to buy oil from Russia

04:22in the same tweet that you're referring to.

04:24And, I mean, look, I mean,

04:25President Trump had made his mind very clear yesterday.

04:28He said he was going to do it in the next 24 hours

04:31and he's put additional tariffs of 25%

04:34and they go into effect,

04:36and I'm reading from the White House release that I have here,

04:38is it's going to go into effect 21 days from now.

04:43So this is 25% of tariff,

04:4521 additional tariffs on what he's already put out there.

04:48It's going to go from 21 days after the date of this order,

04:53which is today.

04:53And then in the release that White House has,

04:57they've blamed this entirely on India buying oil from Russia

05:01and attributed it to the fact that the situation in Ukraine

05:05and Russia, India essentially helping out by purchasing oil

05:09has allowed Russia to continue this war.

05:11So this is big.

05:12I think this is massive.

05:13You know, to put this in writing in the executive order

05:16to say that the reason why he's doing so,

05:18that is Donald Trump,

05:19is putting these additional tariffs

05:20is because they believe in the White House

05:23and President Trump firmly believes

05:24that India has enabled Russia

05:26to continue fighting this war against Ukraine.

05:31So it's big, it's massive.

05:34And I think this is a very, very, you know,

05:35I don't recollect in the last 25 years

05:37we've had a low of such kind

05:39when it comes to India and US relationships.

05:41So 21 days from now,

05:43we'll have additional 25% tariffs.

05:46I want to quickly cut across to my colleague,

05:48Karishma Sudhani, who's also joining us.

05:49What really does it mean for India?

05:51Because viewers, it just also now narrows

05:53the scope of retrieval, of talks,

05:58where it comes down between India

05:59and the United States of America.

06:02But Karishma, I want you to come in.

06:04How much could India now stand to lose

06:06if this tariff actually kicks in,

06:08which is 50% 21 days from now?

06:10We need to understand that a 50% tariff on us

06:18is going to be very difficult

06:20and India's trade ministry

06:22will have to now look into this

06:25specifically the fact that

06:27comes as a big surprise to us.

06:33We also need to understand

06:35if the pharmaceutical aspect

06:37is going to be included in this or not.

06:40We were looking if we have the appetite

06:42to include already the 25%.

06:44A couple of economic reports

06:47that have come out recently

06:48also spoke of how our total exports

06:51on a global scale

06:53would be impacted by close to about 1.8%.

06:56But with a 50% tariff,

06:58it's going to really push us down on the ladder.

07:02Really push us down on the ladder.

07:04What will be India's response?

07:05We're going to be, you know,

07:06it's going to be coming in quick and fast

07:08because this is huge.

07:09Where it comes down to a trust deficit,

07:11does it come down to relationship

07:12with the United States of America?

07:13I would reckon in the recent times

07:16because this is an all-time low.

07:18You had the President of the United States of America

07:21threaten to raise the tariff

07:23if India did not kowtow

07:25to what America wanted

07:27which is stop buying Russian oil

07:29and now seemingly the penalty

07:32that he was speaking of

07:33in an executive order

07:35which he's just communicated

07:37through a post on Social Media X

07:41the tariff for India is 25%

07:44over and above of what it was last

07:46which takes it to 50%.

07:47It will come into force 21 days from now

07:51is what the United States of America,

07:54the president says.

Category

Transcript

Recommended