The United States, under the Trump administration, has imposed 50 percent tariffs on both Chinese and Indian goods, but with very different rationales and implications for each country. 

White House Trade Adviser Peter Navarro clarified that while tariffs on China have been reciprocal and primarily trade-focused, the tariffs on India are driven by national security concerns, specifically India's continued purchase of Russian oil, which the US claims funds Russia's military operations in Ukraine.

Navarro emphasised that the US already maintains over 50 percent tariffs on Chinese goods but is cautious not to harm its own economy through excessive duties. In contrast, the 50 percent tariffs on India resulted from India's refusal to stop buying Russian oil despite US pressure.

Navarro labelled India as the "Maharaja of Tariffs" due to its high tariff and non-tariff barriers on American products, which restrict US exports to India in what he described as an unfair trade environment.

He further pointed out the geopolitical consequences: American dollars spent on Indian goods indirectly fund Russia's military through India's oil purchases, creating a problematic cycle that he argues American taxpayers ultimately suffer from by supporting Ukraine's defence against Russia.

President Donald Trump linked economic security to national security in justifying these tariffs, stating that the current situation where India funds Russian armaments through oil trade cannot continue.

Meanwhile, Navarro mentioned the US would continue to work on tariffs with China, but the situation with India was treated more severely due to the national security component.

Former US National Security Adviser John Bolton criticised Trump's tariff policy, warning that it might backfire by pushing India closer to Russia and China.

Bolton expressed concern that India's negative reaction to these tariffs, especially since China has not faced similar penalties for its Russian oil purchases, could jeopardise long-standing US efforts to reduce India's reliance on Russia and prevent China from expanding its influence in the Indo-Pacific region.

He suggested that the tariffs might strengthen a strategic alignment between India, Russia, and China against US tariff actions.

The tariffs escalated tensions between the US and India, with India condemning the US actions as "unjustified and unreasonable," arguing that it is acting in its national interest in securing energy supplies.

The tariffs are expected to impact goods ranging from textiles to jewellery and could hurt India's GDP growth by up to 1 percent, reflecting the economic repercussions of this trade conflict.

The US tariffs on India at 50 percent uniquely reflect a mix of trade retaliation and national security concerns related to the Russia-Ukraine conflict.

The US seeks to punish India's energy policy while avoiding harm to its own economy, a balance it manages differently with China.

However, these measures have stirred significant geopolitical and economic tensions, with debates on whether they ultimately serve or harm US strategic interests in the region.

Based On ANI Report