Additional 25% tariff will essentially cut off most Indian exports to US, says former trade official

President Donald Trump's announcement of additional 25 per cent tariffs on India will essentially cut off most Indian exports to the US, a former American trade official said on Wednesday, voicing concern over the escalating bilateral dispute.

Senior Vice President of the Asia Society Policy Institute (ASPI) and former Deputy US Trade Representative Wendy Cutler also suggested that officials in Delhi and Washington should try to work out their differences in private.

"Regrettably, the US-India dispute is escalating, with the President now threatening an additional 25 per cent tariff. This will essentially cut off most Indian exports to the US," Cutler said.


She said this turnaround in bilateral relations has occurred quickly, and neither side can afford to be at odds with each other.

"Beijing is most probably welcoming these developments and may take modest steps now to improve its relations with Delhi. It's time for US and Indian officials to try to work out their differences in private," Cutler said in a statement.

Trump on Wednesday signed an executive order, imposing the additional 25 per cent tariff on India for its purchases of Russian oil, bringing the total tariffs imposed on India to 50 per cent.

The additional ad valorem rate of duty of 25 per cent will be effective after 21 days from the signing of the executive order.

Reacting to the development, India said these actions are "unfair, unjustified and unreasonable".

On Tuesday, Trump said in an interview with CNBC that India has not been a good trading partner and announced he will raise tariffs on India "very substantially over the next 24 hours" because Delhi is "buying Russian oil and fuelling the Ukraine war machine".