President Trump previously imposed a deadline of 1 August for the declaration of tariff rates. He confirmed that India’s rate, which is higher than 10 per cent baseline, is due to the country’s ties with Russia.
“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 nonmonetary trade barriers of any country,” Trump explained in a social media post.
“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.
“India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August 1.”
India is the world’s largest cutting and polishing centre for diamonds, and the US is the largest importer of polished diamonds.
According to a statement from India’s Ministry of Commerce and Industry, the government will prioritise national interest in all negotiations.
“India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months,” the statement explained.
“We remain committed to that objective. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements.”
The US has also agreed to a 15 per cent tax rate on the majority of goods from the European Union. It’s been said that ‘strategic’ items would be placed on a zero-for-zero rate; however, it remains unclear if diamonds or luxury goods, such as jewellery and watches, will be placed in this category.
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