Former US President Donald Trump has announced sweeping tariffs on Indian goods, coupled with additional financial penalties, in a move targeting New Delhi’s deepening relationship with Russia. The decision, which has sent shockwaves through global trade circles, could further strain US-India relations.
Why Now?
The timing of these measures has raised eyebrows, coming just weeks after India signed a major energy deal with Moscow. Analysts suggest this is Trump’s way of punishing nations that continue to engage with Russia despite Western sanctions.
The Economic Impact
Key sectors affected:
- Steel and aluminium exports face a 25% tariff hike
- Pharmaceutical imports hit with 15% surcharge
- Additional 10% penalty on all bilateral trade
Indian officials have called the measures "unjustified" and are reportedly considering retaliatory actions.
Global Reactions
European markets reacted nervously to the news, with the FTSE 100 dropping 0.8% in early trading. Meanwhile, Kremlin spokesperson Dmitry Peskov dismissed the tariffs as "another example of American bullying."
Trade experts warn this could mark the beginning of a new era of protectionist policies, with potential ripple effects across emerging markets.
