"Damaging impact this could have on US-India relationship": Foreign Expert on additional tariffs on India

Washington [US], August 7 : With US President Donald Trump imposing additional 25 percent tariffs on Indian products. Washington DC-based South Asia analyst Michael Kugelman stated that this is the "worst crisis" that the relationship has faced over the last two decades of strategic partnership and stated this could have a "demaging impact" on the US-India relationship.

Director of the South Asia Institute at the Wilson Center, Michael Kugelman said, "...Unfortunately, given just how the relationship has been developing in recent days, this new announcement is not all that surprising. The President has also appeared very committed to following through with tariffs. Despite the potential impact the damaging impact this could have on the US-India relationship, it's not that much of a surprise to me that in the end the President decided to follow through on his threat to impose this additional penalty."

He further noted the multifaced relationship of the two countries that can stand "shocks" to the broader relationship and argued that there is posisbility of saving this relationship.

"I think this is the worst crisis that the relationship has faced over the last two decades of strategic partnership...I would argue that there is potential for this relationship to be salvaged, not just because of the natural, shared interests and the strategic convergences, but this is a relationship that is multifaceted and has many different areas of cooperation that play out on parallel tracks and have the insulation to withstand shocks to the broader relationship..."

On being asked about why President Trump is not punishing China, but targeting India (for Russian imports), Michael Kugelman said, "...China has not stood out there and refused to let President Trump take credit for his role in the ceasefire. China has not had its leader have a long conversation with Trump on the phone and essentially dictate to him what's right and what's wrong. These are things that happened with India. So I think that's why perhaps President Trump would reserve some of his greatest ire on the trade and tariff front for India and for the Indian government. Indeed, it's a double standard. It's hypocritical, whatever you want to say..."

His reaction comes after, US President Donald Trump on Wednesday signed an Executive Order imposing an additional 25 per cent tariff on imports from India.According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as other relevant trade laws, for the increase, claiming that India's imports of Russian oil, directly or indirectly, pose an "unusual and extraordinary threat" to the United States.After the order, the total tariff on Indian goods will be 50 per cent.

While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days and will be imposed on all Indian goods imported into the US, except for goods already in transit or those meeting specific exemptions.

The Executive Order also allows for modifications based on changing circumstances, including potential retaliation by other countries or steps taken by Russia or India to address the national emergency."

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 per cent," the order stated.

India has termed the United States' move to impose additional tariffs on India over its oil imports from Russia as "unfair, unjustified and unreasonable."

Ministry of External Affairs said New Delhi will take "all actions necessary to protect its national interests.

"In an official statement, the MEA said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."

"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," the statement added. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the MEA stressed.

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