India-US Tariff War / Trump's 'bullying' will not work, government is going to take these big steps

India-US Tariff War: US President Donald Trump has imposed a tariff of 25 percent on India before the deadline of August 1. This step has been taken in response to the growing trade relations between India and Russia. In the last few years, India has increased the amount of buying cheap crude oil from Russia, which is not acceptable to the US. Along with this tariff, India will also have to pay a penalty, which can further deepen the tension between the two countries.

Indian government's stance: National interest is paramount

Negotiations were going on between India and the US for a fair and balanced trade agreement for several months. India has made it clear that it gives top priority to the interests of its farmers, small businessmen and MSME sector. The government has assured that every possible step will be taken to protect national interests, as seen earlier in the comprehensive economic agreement with the UK. This agreement is an example of strengthening India's trade interests.

Cheaper oil from Russia: The reason for America's displeasure

The Russia-Ukraine war has completed three years. During this time, most of the countries in Europe stopped buying oil and gas from Russia, but India continued to import cheap crude oil. This benefited India economically, but this move was not liked by America and Europe. Experts believe that this strategy of India provoked America to take tough steps, resulting in the imposition of this tariff and fine.

Possible impact on the stock market

This decision of Trump can have a profound impact on the Indian stock market. Experts predict that the tariff may lead to a decline in the market, which may cause losses to investors. The stock market had seen a good rise in the recent two trading sessions, but after this new tariff, the possibility of instability and decline in the market has increased.

Future path

This situation has brought many challenges for India. The government will now have to balance between trade strategy and diplomatic steps. There is a need to take concrete steps towards reducing trade tensions with America while maintaining economic relations with Russia. Also, alternative measures will have to be considered to protect the Indian economy from the impact of this tariff.