'Unfair, unjustified': India reacts sharply to Trump's additional tariff

New Delhi: The US action of levying 25 per cent additional tariff on Indian goods is "unfair, unjustified and unreasonable", India said on Wednesday in a firm reaction, signalling increasing tensions in relations between the two strategic partners over New Delhi's procurement of Russian crude oil.

Shortly after US President Donald Trump issued an executive order slapping the additional tariff, New Delhi said Washington has "targeted" its oil imports from Russia and that it will "take all actions" necessary to protect national interests.

Defending India's energy ties with Russia, the Ministry of External Affairs (MEA) said the imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of the country.

In a statement, the MEA pointed out that several other countries are also making such procurements to protect their own national interest and hinted its disappointment for singling it out on the issue.

The US president issued the executive order hitting India with an additional 25 per cent tariff on Indian goods citing its continuing procurement of Russian crude oil.

The additional tariff, to come into effect after 21 days, will increase the duties on some Indian goods to 50 per cent. The tariffs are likely to hit sectors such as textiles, marine and leather hard.

"We reiterate that these actions are unfair, unjustified and unreasonable," the MEA said.

It said the US has in recent days "targeted" India's oil imports from Russia.

"We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," it said.

"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," it added.

It is India's second such sharp reaction on the issue in last three days.

On Monday, New Delhi mounted an unusually sharp counter-attack on the US and the European Union for what it called their "unjustified and unreasonable" targeting of India for its energy ties with Russia.

India's comments were in response to US President Trump's remarks that he will substantially raise tariffs on goods from India.

"Where the US is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals.

"In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the MEA had said.

Over the last few months, India and the US held several rounds of negotiations for a bilateral trade deal but it could not be sealed in view of sharp divergences in certain critical areas including agriculture and dairy.

The bilateral trade between India and the US was around USD 130 billion last year and there was a projection of upward mobility in the volume.

The sectors, which will have to bear the brunt of the new tariffs, include textiles/ clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.

The exempted goods, which will not be subject to the high tariffs, include pharmaceutical; energy products such as crude oil, refined fuels, natural gas, coal, and electricity; critical minerals; and a wide range of electronics and semiconductors, like computers, tablets, smartphones, solid-state drives, flat panel displays, and integrated circuits.