WASHINGTON: From Thursday (7th August, 2025) US commenced collecting 10% or higher tariffs from 60 countries and EU.
It is yet to be seen whether the augmented tariffs and expected investment of billions of dollars by EU, Japan and Korea, contribute towards shrinking US trade deficits sans impacting the world supply chains or provoking retaliation from exporters.
India and Brazil, that face 50 percent tariff on commodities are determined not to surrender.
President Donald Trump has imposed an additional 25% tariff on India, for purchasing oil from Russia, by means of an executive order signed here on Wednesday (6th August, 2025).
On 5th August, India, responding to US President’s Tariff threat, pointed out that India had been targeted by the US and the EU for importing oil from Russia after the commencement of the Ukraine conflict.
“In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability.
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are necessity compelled by global market situation.
“However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case , such trade is not even a vital national compulsion.
“The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023.
“This is significantly more than India’s total trade with Russia that year or subsequently. European imports of LNG in 2024, in fact, reached a record 16.5 million tonnes, surpassing the last record of 15.21 million tons in 2022.
“Where the United States is concerned, it continues to import from Russia uranium hexaflouride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals.
“In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.
“Europe-Russia trade includes not just energy, but also fertilisers, mining products, chemicals, Iron and steel and machinery and transport equipment.”
On 6th August, two days before the expiry of Trump’s warning apropos augmentation of levies on commodities exported by Russia to USA, if Moscow fails to stop the 42-month-long-war with Kyiv, Steve Witkoff, Envoy from Washington, held talks with Putin in Kremlin. It is pertinent to mention here that following the Putin-Witkoff rendezvous Trump signed an executive order slapping 25% extra tariff on Indian commodities exported to USA. This was meant to stop India from buying Russian oil.
Savants at the helm of affairs are of the view that this could bring Kremlin and New Delhi closer.
Newspakistan.tv
