New tariff threat

Additional duties will increase risks for India

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The unease in India’s relations with the United States (US) is showing little sign of relenting.

Recent statements made by American President Donald Trump and members of his administration about India did not offer much hope. Although India’s response has been restrained, as should be the case, Mr Trump last week backed a Bill that would empower him to impose a tariff of at least 500 per cent on countries buying Russian-origin uranium and petroleum products. The Bill has bipartisan support and may not face much difficulty in getting passed, possibly in the coming days. It could seriously affect India’s chances of arriving ata trade deal with the US in the near future. Thus, even if the US Supreme Court rejects the imposition of tariffs on legal grounds, India may not benefit if the proposed Bill is passed.