Well, I’m joined now by our North America business correspondent, Michelle Flurry. Uh Michelle, hello to you. Let’s talk about this additional 25% tariff on India uh imposed by the US by executive order uh over its purchase of Russian oil and gas as well as other goods.
What sort of impact is this going to have, Michelle?
Look, I think it’s going to be very significant. you’re talking about a 50% tariff come September uh on goods imported between a huge country that had at some point hoped to secure a trade deal with America.
Uh if you look at what the executive order says, the president goes on to say he had received additional information from various senior officials uh on the actions of the Russian government with respect to the situation in Ukraine saying that given the national security risks involved, it justified this new tariff. Uh it’s going to be very disappointing to the Indian government.
Remember uh President Modi and Donald Trump have enjoyed a strong good relationship. Modi was one of the first leaders to actually visit Trump after he won his second term.
Uh they’ve held the two men have held rallies together and so this is a real turnaround in the relationship between these two countries. But of course you can’t divorce it from what is going on right now with Steve Whit in Russia.
You know, Donald Trump, we know, likes to use tariffs as leverage, and that very much appears to be the situation.