The introduction of additional tariffs by the US against New Delhi is a serious blow to Indian exports. This step by Washington will directly affect more than half of India's supplies to the US market, said Subhash Chander Ralhan, president of the Federation of Indian Export Organizations (created by the Ministry of Commerce and Industry of India), quoted by TASS.
“This step is a serious blow to Indian exports, as it directly affects almost 55% of our supplies to the US market“, he said. "A 50 percent reciprocal tariff actually increases costs, putting our exporters at a competitive disadvantage of 30-35 percentage points compared to their counterparts in countries with lower reciprocal tariffs.
Many export orders have already been frozen as buyers reconsider their sourcing decisions in light of higher delivery costs.
The US administration has imposed additional duties of 25 percent on India over its purchase of Russian oil. In addition to the US's earlier decision to impose a 25% tariff on Indian goods, the tariff on the South Asian republic will now be 50%.
Earlier, US President Donald Trump said that India "has always bought most of its military equipment from Russia" and is "along with China, the largest buyer" of Russian energy resources. The Indian Foreign Ministry called the attacks by the US and the EU over the import of Russian oil unjustified, as Western countries have previously encouraged such trade and themselves continue to buy goods and services from the Russian Federation. As the Indian Foreign Ministry stressed, "it is extremely unfortunate that the US has decided to impose additional tariffs on India for actions that a number of other countries are also taking in their national interest". These actions by the US are baseless and unreasonable, and India will take all necessary measures to protect its national interests, the Ministry of Foreign Affairs of the South Asian republic said.