The 50% rate, half of which is punishment for #India buying #oil from #Russia, is expected to damage many Indian exporters that collectively employ millions of people. The move could rupture America’s expanding economic relationship with India, where ⅔ of the largest #US #corporations have #offshore operations. The tariff also undermines the stability of billions of dollars of foreign investment in India’s #StockMarket, the world’s 4th largest.
The extraordinary levy puts #India at a disadvantage in the new trading order #Trump set in motion when he announced #tariffs on dozens of countries in April.
Trump has declared a truce w/ #China, which ran a >$1 trillion global surplus last year & is considered the principal antagonist in his #trade war. In that context, the 50% tariff on India risks undermining a key strategy used more by US importers in recent years to shift production to India to lessen their dependency on Chinese factories.
