WASHINGTON: The imposition of an additional 25 per cent duty on India is a “national security issue” associated with New Delhi’s “abject refusal to stop buying Russian oil,” White House trade adviser Peter Navarro has said.
This new tariff, which comes on top of a previously announced 25 per cent reciprocal tariff, brings the total duty on Indian goods to 50 per cent, one of the highest imposed by the US on any country.
Navarro, in a statement to reporters, clarified that the rationale for the new tariff is distinct from other trade duties. He argued that every American needs to understand the “math” behind the decision:
US dollars are used to buy Indian products in what he called an “unfair trade environment.” India, in turn, uses those dollars to buy Russian oil, which helps finance Russia’s military actions in Ukraine.
Navarro contended that this economic chain “does not work” and that President Donald Trump understands the connection between economic and national security.
The move has drawn a sharp response from India’s Ministry of External Affairs, which called the tariffs “unjustified and unreasonable.”
The ministry reiterated that India’s oil imports are based on market factors and are crucial for the energy security of its 1.4 billion people.
The statement also pointed out that several other countries are also buying Russian oil in their national interest, making the targeting of India unfortunate.
The sudden escalation in the trade dispute risks complicating US-India relations and has prompted calls for diplomatic talks to resolve the issue.