Donald Trump threatens to increase customs duties for India to 50 %

While the customs duties imposed by Donald Trump are Entering into force this Thursday, August 7the American president hardened the tone vis-à-vis India, by signing a decree which could pass the customs prices from 25 to 50 %.

Washington criticizes New Delhi the lack of opening of its economy and its Russian oil purchases under sanction, even if Indian leaders say they want peace. This measure aims to deprive the revenue kremlin to finance its war in Ukraine and to push the Russian government to The negotiation table In order, possibly, to accept a cease-fire followed by long-term peace in Ukraine.

Donald Trump gave Narendra Modi twenty-one days to react, a period after which new customs duties will be applied for any export to the United States.

The Indian Prime Minister said he was ready to pay “Personally the price” of the defense of India. “We will not compromise the interests of our farmers, our dairy sector, our fishermen”he assured.

Donald Trump threats could disrupt India’s economic trajectory, a major Asian economy which, until recently, was considered an alternative to China by American companies who were looking to relocate their production.

The Indian government described on Wednesday as “unfortunate” additional customs duties. “We reiterate that these actions are unfair, unjustified and unreasonable”said Randir Jaiswal, spokesperson for the Ministry of Foreign Affairs, in a statement, adding that India would take all the necessary measures to protect its interests.

Randir Jaiswal added that India had already clearly said that imports from the country were based on market factors and were part of a global objective aimed at guaranteeing the energy security of its 1.4 billion inhabitants.

Exports reduced by two?

In 2024, the United States recorded a trade deficit of $ 45.8 billion (52.5 billion euros) with India, which means that Washington imported more articles from India that it has exported, according to the United States census office. American consumers and companies buy drugs, precious stones, textiles and clothing from India.

Ajay Srivastava, a former Indian civil servant in charge of trade, assured that the last customs duties place the country among the most heavily taxed United States business partners and well above Rivaux such as China, Vietnam and Bangladesh.

The country is however considered an ally by Washington, Narendra Modi having gone to the United States In February, this year.

“Customs duties should make Indian products much more expensive, which could reduce exports from around 40 to 50 % to the United States”said Ajay Srivastava.

China benefits from a stay

He describes Donald Trump’s decision to“hypocrite”China having bought more oil than India last year. “Washington avoids targeting Beijing due to the influence of China on critical ores that are essential for American defense and technology”he pressed.

China, which also bought oil from Russia, currently has a stay. Currently, all Chinese products are subject to customs duties of 30 %, but Beijing continues to negotiate more favorable customs tariffs.

At present, the Brazil is the only other country to be subject to an import tax of 50 % On all of its products. This does not include customs duties on steel, aluminum and copper, also 50 %, imposed on all countries of the world, with the exception of the United Kingdom.