President Donald Trump’s decision to double U.S. import duties on India—from 25% to 50%—officially came into force today. The move is a direct response to New Delhi’s continued purchases of discounted Russian crude, which the White House says "indirectly finance Moscow's war in Ukraine."
Data from industry trackers shows India imported an average of 700,000 barrels of Russian crude daily in Q2 2024, roughly a quarter of its overall oil needs. While energy hubs like Mumbai have welcomed the bargain fuel, U.S. officials argue it undercuts global sanction efforts.
For Indian exporters—from textile mills in Tirupur to tech firms in Bangalore—the 50% levy is more than a price hike: it’s a strategic pivot point. Annual exports valued at about $6.5 billion now face steeper hurdles as supply chains and profit margins tighten. "We're exploring alternative markets to offset the impact," says Rahul Mehta, CEO of Indus Tech Exports.
Beyond the immediate trade clash, the policy shift underscores how energy security and geopolitics are rewriting global commerce rules. Economists warn that prolonged tariffs could push companies to diversify supply sources, accelerating shifts in manufacturing and trade corridors.
As this transcontinental dispute unfolds, agile entrepreneurs, travelers, and digital nomads alike will feel the ripple effects—from pricier gadgets to evolving travel itineraries—highlighting the interconnected nature of today’s global economy.
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Trump's 50% tariffs on India over Russian oil purchases take effect
cgtn.com
