WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR: M.J. GDNUS
U.S. President Donald Trump has imposed a 50% tariff on most American imports from India, escalating a dispute over New Delhi's purchase of discounted Russian oil.
The tariffs, which come into effect today, double the previous rate of 25% and represent one of the highest rates Trump has ever applied to any country.
The White House stated that imports of Indian oil are indirectly financing Russia’s war in Ukraine.
Economists warn that this move could harm the Indian economy, disrupt global supply chains, and push American buyers toward competitors such as Turkey, Vietnam, and China.
Indian officials have condemned the measure as unfair, and Prime Minister Narendra Modi urged citizens to buy domestic products. “The pressure on us may increase, but we will endure it,” Modi said. Exports of textiles, gems, jewelry, and seafood are particularly affected, while some key products, including smartphones, have been exempted.
Analysts warn that sustained 50% tariffs could reduce India’s GDP growth to below 6%. The Federation of Indian Export Organisations stated that textile manufacturers in Tiruppur, Delhi, and Surat have already halted production.
Foreign Minister S. Jaishankar called the U.S. demand to halt imports of Russian crude oil “unjustified and unreasonable,” noting that Europe trades far more with Russia. Despite tensions, trade talks between the U.S. and India continue, though trust in future relations may be the biggest casualty.
India has strengthened ties with Russia and is preparing to engage with China at the Shanghai Cooperation Organization summit later this year. Analysts say the tariff escalation threatens long-term relations with Washington.
