"Unnecessary strain on trade environment": EY's Trade Policy Leader on US's additional 25% tariff on India

New Delhi [India], August 6 (ANI): The US's announcement of an additional 25 per cent tariff on Indian imports over the purchase of Russian oil is placing "unnecessary strain on the trade environment," EY India's Trade Policy Leader Agneshwar Sen stated on Wednesday.
Speaking on the development, Sen expressed disappointment, noting that the announcement comes at a time when both nations were actively working to resolve earlier trade differences and strengthen relations through a trade agreement.
"It is disappointing to see additional tariffs being announced at a time when we are actively working towards resolving the earlier differences and to strengthen our trade relationship through a trade agreement. Announcing another 25% tariff places unnecessary strain on the trade environment," Sen stated in a statement.
This came after Washington announced the additional levy, which adds to an existing 25 per cent tariff, raising the total duty on Indian goods to 50 per cent, effective from August 27.
Sen emphasised that while nations have the right to address trade concerns through tariff measures, political differences are best resolved through mutual dialogue and established forums, rather than unilateral tariff actions.
"While nations have the right to address trade concerns through tariff measures, political differences are best resolved through mutual dialogue and established forums, not through such measures. I remain hopeful that the Government of India will continue to engage and seek a balanced resolution with the US," he added.
Earlier today, US President Donald Trump signed an Executive Order imposing an additional 25 per cent tariff on imports from India.
According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as other relevant trade laws, for the increase, claiming that India's imports of Russian oil, directly or indirectly, pose an "unusual and extraordinary threat" to the United States.
After the order, the total tariff on Indian goods will be 50 per cent. While the initial duty comes into effect on August 7, the additional levy will come into effect after 21 days and will be imposed on all Indian goods imported into the US, except for goods already in transit or those meeting specific exemptions.
Following this announcement, the Ministry of External Affairs (MEA), in its response, termed the US's move as "unfair, unjustified and unreasonable", declaring that New Delhi will take "all actions necessary to protect its national interests."
In an official statement, the MEA said, "The United States 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 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," the statement added.
"We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the MEA stressed. (ANI)