President Trump has raised tariffs on good imported from India to 50%. At CNBC Erin Doherty reports:
The White House announced Wednesday that it is imposing an additional 25% tariff on India, bringing the total levies against the major United States trading partner to 50%.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” President Donald Trump said in an executive order.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” the executive order reads.
The new tariffs are set to go into effect in 21 days, according to the order, while the previously announced 25% tariffs are set to take effect on Thursday.
Trump’s new tariff rate on India is now among the highest levies on any of the United States’ trading partners.
That sounds like he’s serious about striking at the oil revenue that has increased Russian GDP over the last year and provided the funds necessary to continue the war. Whether the new tariff is actually applied or whether it will be effective are different questions.
I’m less concerned than some about such actions driving India farther into the Russian-Chinese orbit. India will remain within the Indian orbit and the Indians recognize that China is a bigger risk for them than the United States.
If Mr. Trump is really serious, he’ll go after India’s services trade with the U. S. which will be more difficult but which dwarfs its goods trade with the U. S.
I had similar thoughts. I dont think we really need much in the way of goods from India. They make a lot of cheap apparel and that kind of stuff but we can get that from lots of other places. Services are different, but Trump has taught his believers that only manufacturing matters.
Steve
When I looked it up I learned that our goods imports from India vary from $70 billion to $150 billion per year. Not a huge amount in the total scheme of things but a not inconsiderable amount.
The estimated service imports are at least twice as great. I think much greater—as I’ve said before we don’t really keep track of offshore outsourcing.