Trump raises customs duty on India to 50 percent

US President Donald Trump has raised the customs duty on products imported from India to 50 percent by imposing an additional 25 percent tax on top of the existing 25 percent duty. While the 50 percent customs duty to be applied to Brazil went into effect today, the new customs duty applied to India will take effect on August 27.

The White House stated that the additional customs duty imposed on India was applied due to oil imports from Russia. Trump may impose new sanctions on India if oil imports from Russia continue.

"INDIA WILL TAKE ALL NECESSARY MEASURES"

In a written statement issued by the Indian Ministry of External Affairs, it was recalled that the US has recently targeted India's oil imports from Russia, stating, "We have previously clearly stated our position on this matter, noting that our imports are based on market factors and are conducted to ensure the energy security of 1.4 billion Indian citizens.

Therefore, it is extremely unfortunate that the US has decided to impose additional customs duties on India due to measures that many other countries have also taken in line with their own national interests. We reiterate that these measures are unfair, unjustified, and irrational. India will take all necessary measures to protect its national interests," the statement said.

The new tax on India is expected to particularly affect textile, pharmaceutical, and electronics exports. A decline of 0.3-0.4 percent may occur in the growth forecast for the Indian economy for the 2025-2026 period.

BRAZIL TO APPLY TO THE WTO

While Brazil announced that it would apply to the World Trade Organization (WTO), India described the decision as "unfair and a double standard." Brazilian President Luiz Inácio Lula da Silva announced that he would not speak directly with Trump regarding the new taxes, but would contact Indian Prime Minister Narendra Modi. Lula announced that the two countries would launch a joint initiative before the WTO.

The Brazilian government reported that some products were exempted from the tariff, including strategic items such as aircraft parts, iron ore, energy, and fertilizers. Brazilian Finance Minister Fernando Haddad said they would discuss the process by meeting with US Treasury Secretary Scott Bessent next week.