The United Nations has raised concern over growing trade tensions after US President Donald Trump announced steep tariffs on Indian exports. The move, linked to India’s oil trade with Russia, has disrupted warming ties between the two nations. In response, Prime Minister Narendra Modi is set to lead a high-level meeting to assess the damage and support affected exporters.
UN Expresses Concern Over US Tariffs
The United Nations said it is “disheartened” by the US decision to impose a 50% tariff on Indian goods. The move, announced by President Donald Trump, comes amid rising global tensions and ongoing conflict in Ukraine. The US aims to pressure Russia into a ceasefire by targeting its major oil customers, including India.
India is the second-biggest buyer of Russian oil. The US believes cutting this link could weaken Moscow’s position. However, the UN fears these steps could hurt trade stability worldwide, especially in developing nations.
Sharp tariffs like these can impact small businesses and workers who rely on exports. The UN warned that such measures may not help the peace process and instead disrupt the fragile global economy.
Diplomats said while countries have the right to make trade decisions, harsh and sudden penalties can make peaceful resolutions more difficult.
Modi to Lead Emergency Cabinet Meeting
In response, Prime Minister Narendra Modi will chair a crucial Cabinet meeting at 1 PM on Friday. The aim is to assess the impact of the tariff hike and plan immediate support for exporters. The 50% duty includes an additional 25% announced on Wednesday by President Trump. These tariffs will take effect on August 27.
The Indian government is preparing to help industries hit by the move, especially small and medium businesses. Key sectors such as textiles, engineering goods, and pharmaceuticals may suffer big losses.
🛢️ 50% tariffs, secondary sanctions warning: Trump’s crackdown pushes India to the edge
Officials said support measures could include financial relief, tax benefits, and easier access to credit. The Commerce Ministry is gathering feedback from industry leaders ahead of the meeting. A full report will be presented to Prime Minister Modi.
The decision has created serious uncertainty among Indian exporters. To make matters more difficult, President Trump also announced that no further trade talks will be held with India until current tensions are resolved.
Link to Russia and Secondary Sanctions
The tariff decision is closely tied to India’s oil trade with Russia. President Trump had earlier warned countries doing business with Moscow that they could face secondary sanctions. These would penalize countries indirectly supporting the Russian economy.
🇮🇳 Trump’s 50% tariffs backfire? Modi reaches toward China with surprise SCO return after 7 years
Originally, Trump gave Russia 50 days to agree to a ceasefire in Ukraine. That deadline was later cut to 12 days, ending on Friday. Although other nations also buy Russian oil, India has been directly targeted in this round of penalties.
The extra 25% tariff announced on Wednesday adds to a previous 25% duty imposed earlier. It’s unclear whether both are part of the same pressure strategy or if other trade issues are involved.
By targeting India, the US hopes to push Russia toward peace by cutting off key revenue sources. However, this move has drawn criticism globally. The UN and several trade bodies believe that economic penalties on allies may worsen the situation instead of solving it.
As exporters wait anxiously, all eyes are now on Prime Minister Modi’s upcoming Cabinet meeting. Businesses hope for swift action to protect jobs and reduce losses. Global leaders continue to call for dialogue over conflict and cooperation over pressure.