DNA TV Show: Why US President Donald Trump imposed 25% tariff on India

After India and the US could not reach an agreement on a trade deal, Trump announced a unilateral 25% tariff on India. The new tariff rates will come into effect from August 1. How much will this tariff attack affect the country and our pockets? Did Trump not like the friendship between India and Russia, so he imposed a 25 per cent tariff, or did Trump face embarrassment over Operation Sindoor and the ceasefire claims, so he imposed a 25 per cent tariff on India?

He said that India imposes high tariffs on American goods. India buys most of its military equipment from Russia. India is the biggest buyer of Russian oil. Trump wants India to reduce tariffs on American goods. India should give importance to America in defence purchases, and India should buy oil from the US instead of Russia

Trump's wish is that India should also consider the country which is America's enemy as its enemy, and stop doing business and friendship with it. In a way, Trump has become a bully, but will India break its friendship with Russia due to Trump? Will India act according to Trump's wish? India is an independent country. It is the world's largest democracy, and it is our right to do business with whoever we want and not with whoever we want.

Like Russia, we have strong business relations with America, too. There is a trade of about USD  billion between India and the US. America's share in India's total exports is about 18 per cent. At the same time, America's share in India's total imports is about 6 per cent.

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That is, India imports less from US and exports more. That is, we buy less from America and sell more. This was troubling Trump. That is why Trump was threatening India before. And now he has imposed a 25 per cent tariff on India. The main reason for the one-sided tariff imposed by Trump on India is India's purchase of arms and oil from Russia. 

But how buying arms and oil from Russia is in India's national interest. India imports more than 85 per cent of its total crude oil consumption. Russia is giving India oil cheaper by about USD 25 per barrel. Transactions with Russia are done in rubles and rupees. Russia has also given many reliefs to India due to long-term contracts.