US Slaps 50% Tariff on Indian Goods: PM Modi’s Bold Response and What It Means for Trade

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US Slaps 50% Tariff on Indian Goods: PM Modi’s Bold Response and What It Means for Trade

US President Donald Trump recently announced significant trade achievements while increasing tariffs on Indian goods to 50%. This move prompted a strong reaction from India’s Prime Minister, Narendra Modi, who asserted that India would not yield to pressure.

In remarks to reporters, Trump claimed, “We’ve secured historic trade deals with countries like the UK, China, Japan, and more. Other nations are contributing billions to our treasury.” This statement came just before the US Customs and Border Protection confirmed a major tariff increase on Indian imports, effective immediately.

The new tariffs stem from Executive Order 14329, signed earlier in August, and aim to amend the US Harmonized Tariff Schedule. Trump had previously threatened 25% tariffs on Indian goods, citing high tariffs and trade barriers from India. He stated on social media that this increase reflects long-standing frustrations with India’s trade practices and its defense ties to Russia.

Modi responded firmly at a public event, stating, “No matter the pressure, we will grow stronger. Our Atmanirbhar Bharat initiative is gaining momentum.” This emphasizes India’s focus on self-reliance as a response to global trade challenges.

The relationship between the US and India is complex. While Trump celebrates trade deals with allies, the conflict over tariffs illustrates ongoing tensions. India’s commitment to an independent economic strategy, against the backdrop of US tariffs, sets the stage for a challenging trade environment in the future.

Experts suggest that these tariffs could impact not only trade balances but also diplomatic relations between the two countries. In 2020, the US ran a $21 billion trade deficit with India. Changes in tariffs can have ripple effects on this figure, altering business dynamics and consumer prices.

As both nations navigate this turbulent path, observers are keenly watching how these developments will affect their bilateral ties and broader economic strategies.



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