The US imposes a 50% duty on Indian goods due to the purchase of Russian oil

Administration of the President of the United States Donald Trump imposed a 50% duty on Indian imports to punish the country for buying Russian oil. About writes Bloomberg.

The new tariffs, which are the highest in Asia, came into effect on Wednesday, August 27, at 12:01 a.m. Washington time and effectively doubled the previous 25% duty.

The restrictions will affect more than 55% of India's exports to the United States, the country's largest market. The industries that will be most affected are textiles, footwear and jewelry.

At the same time, electronics and pharmaceuticals are exempt from duties, which allows Apple maintain investments in new plants in India.

Washington believes that buying Russian oil finances the Russian dictator's war Vladimir Putin against Ukraine.

India called the US actions "unfair, unjustified and unreasonable" and said it would continue to purchase fuel based on economic benefits.

According to Citigroup, the new tariffs could reduce India's economic growth by 0.6-0.8 percentage points per year and lead to a drop in orders in labor-intensive industries and job losses.

• On August 6, US President Donald Trump signed a decree introducing penalties against India for purchases of Russian oil.
• In early August, India's state-owned refineries suspended procurement of Russian oil, but Russia started offering large discounts, so supplies were restored.
• On August 26, it was reported that Indian refineries are still planning to reduce purchases of Russian oil in the coming weeks.