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'25 percent tariff plus penalty': Why Trump announced penalty on ‘friend’ India?

US President Donald Trump on Wednesday, i.e., July 30, took to social media platform Truth Social to announced the tariff rate to be imposed on India from August 1.

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'25 percent tariff plus penalty': Why Trump announced penalty on ‘friend’ India?
Prime Minister Narendra Modi and US President Donald Trump (Image/Reuters)

US President Donald Trump on Wednesday, i.e., July 30, took to social media platform Truth Social to announced the tariff rate to be imposed on India from August 1. 

Trump announced a “25 per cent tariff plus penalty” on India. “"Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country". 

The US President cited India’s trade ties with Russia as a reason to impose a penalty on New Delhi. “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE - ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST 1st. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"

However, Trump did not mention what exactly the penalty would entail. 

Why a penalty for 'friend' India?

In the past, the Trump-led administration has continuously threatened to impose "bone-breaking" sanctions on Russia and its trading partners in a bid to bring Moscow to the negotiation table against its invasion of Ukraine. India is one of the biggest buyers of Russia, purchasing military equipment and oil from the nation. 

Prior to the announcement, Trump said in a conversation with mediapersons that even though India is a friend, the country has levied higher tariffs on American goods than any other nation. "Yeah, I think so. India is my friend. They ended the war with Pakistan at my request...The deal with India is not finalised. India has been a good friend, but India has charged basically more tariffs than almost any other country...” President Trump told the reporters in a video shared by ANI.

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