Trump’s first tranche of 25% tariffs on Indian imports takes effect

The first round of 25 per cent tariffs announced by US President Donald Trump on Indian imports came into effect on Thursday, increasing trade tensions between the two nations. The 25% tariff, part of a broader global trade recalibration by the U.S., follows an executive order signed last week aimed at aligning trade relationships with America's national and economic security interests.
The White House had earlier announced that India would be among nearly 70 countries subject to higher tariff rates under the order titled “Further Modifying the Reciprocal Tariff Rates.” For India, a 25% “Reciprocal Tariff, Adjusted” has now officially come into effect for goods entering U.S. markets from August 8 onwards.In addition to the 25 per cent tariff announced last week, Trump on Wednesday imposed another 25 per cent levies on India for its purchases of Russian oil, bringing the total duties slapped on India to 50 per cent, among the highest imposed by the US on any country in the world. The additional 25 per cent duty will come into effect after 21 days or August 27.
Trump had said in the executive order that some trading partners have agreed to, or are on the verge of agreeing to, meaningful trade and security commitments with the United States, thus signalling their sincere intentions to permanently remedy trade barriers and to align with the United States on economic and national security matters.Trump had further stated in the order that there are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters,according to inofrmation.
The tariff modifications will be “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time 7 days after the date of this order.”According to information, the tariffs in the list ranged from 10 per cent to 40 per cent, with Japan being charged 15 per cent, Laos and Myanmar (40 per cent each), Pakistan (19 per cent), Sri Lanka (20 per cent) and the United Kingdom (10 per cent).

(Business Correspondent)