Indian Prime Minister to hold Cabinet meeting over new US tariffs
US President Donald Trump imposes steep tariffs on Indian goods over Russian ties, risking price hikes and straining US-India trade relations. - ADOBE STOCK
NEW DELHI: Indian Prime Minister Narendra Modi will hold a meeting of key cabinet ministers on Friday to discuss the implications of a sharp tariff hike by the US, reported Sputnik/RIA Novosti, quoting an India TV report.
AI Brief
- Trump imposed a 25% tariff on Indian exports, with threats to double it, due to Indias purchases of Russian oil and weapons.
- Tariffs may raise US prices on lab-grown gems, diamonds, and jewelry, as India is a major supplier.
- India rejected US and EU criticism, vowing to protect its economic interests and maintain energy security.
US President Donald Trump said in late July that India will be slapped with a 25 per cent tariff on exports to the US and pay an undisclosed "penalty" for purchasing energy and military equipment from Russia starting August 1. On Wednesday, Trump signed an executive order imposing an additional 25 per cent tariff on India in response to purchases of Russian oil, which will take effect on August 27.
Meanwhile, heavy US tariffs on Indian goods may push up prices for lab-grown gemstones and diamonds in the United States, which relies on India for most of its imports, a RIA Novosti analysis of US statistics data shows.
The US has imposed a 25 per cent tariff on Indian imports and threatened to double it to 50 per cent starting August 27 in response to India's purchases of Russian oil.
In the past 12 months, the US imported US$941.4 million worth of lab-grown gems and semi-precious stones, with India accounting for nearly 88 per cent, or US$824.7 million, of all imports.
The tariffs on India may also affect 46 per cent of US imports of processed and rough diamonds, or US$5.46 billion out of US$11.9 billion in total imports.
The US also imported US$3.48 billion worth of jewellery made of precious metals from India, which accounts for almost a quarter of its total imports. In addition, over 13 per cent, or US$264.6 million, of US imports of jewellery made with natural gemstones also came from India.
On Monday, Indian Foreign Ministry spokesman Randhir Jaiswal rejected US and EU criticism of Russian oil imports as unjustified and unwise. He emphasised that India would take steps to safeguard its interests and economic security.
--BERNAMA-SPUTNIK/RIA NOVOSTI
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