President Donald Trump announced on his social network Truth that Indian products will be the subject of 25% customs duties upon arrival in the United States from August 1, adding that a “penalty” will be added for the purchase of Russian oil.
“We are doing little trade with them, because their customs duties are among the highest in the world and the most tiring and odious non -tariff barriers,” said Donald Trump in a message. “We have a massive trade deficit with India!”
But India has also “bought a majority of their military equipment from Russia and are the main Russian oil customers with China, while everyone wants Russia to stop killing in Ukraine”.
“A penalty”
A situation which justifies, in the eyes of the American president, “a penalty”, which will be added to the 25%, without more specification, and which will also intervene on August 1.
This new price imposed on Indian products represents a symbolic drop in a percentage point (PP) compared to the 26% initially revealed in early April, on the occasion of the announcement of customs duties presented improperly as being “reciprocal” by Donald Trump.
On Tuesday the American president had already given an index by stressing that customs duties on “Made in India” products could be between 20 and 25%, adding, however, that an agreement was still possible.
New Delhi and Washington have launched negotiations for several months with a view to a trade agreement, without result so far, in particular not wishing to open its market completely to American agricultural products.
“At least we now have certainties on customs duties. We will now see whether US exporters (Indians) or importers will be able to absorb this additional cost or not,” said the Director General of the Indian Federation of Exporting Organizations, Ajay Sahai, to AFP.
“Where we need clarity, it is about this penalty. Is it a threat, if India continues to import Russian oil will be struck by a penalty? And on certain products or all?” he questioned himself.
No more break
India is indeed considered to be one of the main customers of Russian oil, however under sanction, but a boon from the point of view of New Delhi, which benefits from a lower purchase price while Moscow seeks to finance its war effort in Ukraine.
However, the American president has hardened the tone in recent days, frustrated by the lack of progress for a possible peace agreement between Russia and Ukraine, and increasingly openly accusing his Russian counterpart, Vladimir Putin, of not trying to end the conflict.
Donald Trump now threatens countries buying Russian oil, but also Iranian, of “secondary” sanctions, which would take the form of additional customs duties on products from these countries.
China and India are among the first Russian oil buyers.
ats/fgn
