The mounting pressure from the United States on India to curb imports of Russian oil, the announcement of penalty tariffs by then U.S. President Donald Trump, India’s diplomatic stance, and the geopolitical-economic consequences of this standoff. U.S. Penalty Tariffs on India On August 6, U.S. President Donald Trump announced a 25% penalty tariff on Indian goods for importing Russian oil. This was in addition to the 25% reciprocal tariffs announced earlier on July 31, during trade talks between U.S. and Indian negotiators aimed at reaching a Free Trade Agreement (FTA). These tariffs are set to take effect August 27, impacting trade in the coming weeks. Trump’s strategy: Use economic measures to pressure India into reducing Russian oil purchases and align with U.S. policy on Ukraine. India’s Response to the Tariffs India’s reaction has been measured and focused on diplomatic communication rather than retaliatory measures: 1. Official Statement by MEA (Aug 4) – Criticized both...
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