Overview

• A White House executive order effective August 6 raised U.S. duties on Indian imports from 25% to 50% and exempted pharmaceuticals, smartphones, semiconductors and energy products.
• The administration justified the increase by calling India’s continued purchase of Russian oil an “unusual and extraordinary threat” that aids Russia’s war in Ukraine.
• India’s Ministry of External Affairs condemned the move as unfair and irrational, defended its energy policy and warned it will take appropriate retaliatory measures.
• U.S. consumers and retailers are poised to see higher prices on textiles, auto parts, steel, gems, jewellery, tea, spices and rice under the new levy.
• The administration indicated it may extend similar tariffs to other BRICS members to counter their efforts to reduce dependence on the U.S. dollar.