New Delhi, August 6
The Global Trade Research Institute (GTRI) on Wednesday called the United States' decision to impose an additional 25 per cent tariff on Indian imports "hypocritical", highlighting Washington's selective approach towards its allies and China when it comes to their trade relations with Moscow.
This came after Washington announced the additional levy, which adds to an existing 25 per cent tariff, raising the total duty on Indian goods to 50 per cent, effective from August 27.
The GTRI, in its statement, stated that the US had overlooked Russia's trade with the European Union and China, noting selective enforcement on India, exposing Washington's hypocrisy.
According to the data given by GTRI, China purchased USD 62.6 billion of Russian oil in 2024, surpassing India's USD 52.7 billion, yet Beijing faces no punitive tariffs.
The think tank pointed out that the US avoids targeting China due to its leverage over critical materials such as gallium, germanium, rare earths, and graphite, which are vital for the US defence and technology industries.
It also noted that the US has turned a blind eye to the EU's USD 39.1 billion imports from Russia in 2024, including USD 25.2 billion in oil, while the US itself purchased USD 3.3 billion in strategic materials from Russia.
"GTRI calls the US action hypocritical. In 2024, China bought $62.6 billion of Russian oil--more than India's $52.7 billion--yet faces no such penalties. Washington avoids targeting Beijing because of China's leverage over critical materials such as gallium, germanium, rare earths, and graphite, vital for US defence and technology," the statement read.
"The U.S. has also overlooked its allies' trade with Russia: the EU imported $39.1 billion of Russian goods last year, including $25.2 billion in oil, while the U.S. itself purchased $3.3 billion in strategic materials from Russia," it added.
It stated that this selective targeting not only threatens India's USD 86.5 billion in annual exports to the US, but also raises questions about the credibility of US trade policy, as the move is expected to potentially reduce Indian exports to the US by 40 per cent to 50 per cent.
"The move places India among the most heavily taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, and threatens most of India's $86.5 billion in annual exports to the US, from textiles to machinery... The tariffs are expected to make Indian goods far costlier in the US, with a cut of US-bound exports by 40-50%," the statement read.
The GTRI recommended that India should remain cautious, avoid immediate retaliation for at least six months, and continue strategic engagement with Russia, China, and other global trade partners. It also noted that abandoning Russian oil purchases solely to appease Washington would not prevent future trade threats.
"India could think of not buying Russian oil if economically viable, but should not abandon Russian oil purchases simply to satisfy Washington. The US may find a new pretext to tax India again. India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade negotiations with the US cannot proceed under threats or mistrust. US action will push India to reconsider its strategic alignment, deepening ties with Russia, China, and many other countries," the statement read.
— ANI
Reader Comments
While I agree with GTRI's analysis, we must also acknowledge that India's dependence on Russian oil makes us vulnerable to such geopolitical pressures. Maybe it's time to diversify our energy sources?
US is showing its true colors again! First they want us to be their ally against China, now they're punishing us for making smart economic decisions. India should strengthen ties with BRICS nations instead.
As an American living in India, I'm embarrassed by my government's actions. This will only push India closer to China and Russia. Short-sighted diplomacy at its worst!
The 50% tariff is outrageous! Our textile industry will be hit hard. Government should provide immediate relief packages to affected exporters. #StandWithIndianExporters
GTRI's recommendation to stay calm is wise. We shouldn't react emotionally but plan strategically. Maybe this is the push India needed to become truly self-reliant (Atmanirbhar Bharat)!
From business perspective, this will make Indian goods uncompetitive in US market. Companies need to quickly explore alternative markets in Africa, Middle East and Latin America.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.