����ֱ��

NEW DELHI: India has vowed to take “all actions necessary” to protect its national interests after US President Donald Trump doubled US tariffs on India to 50 percent over Delhi’s purchase of Russian oil.

Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India on top of a 25 percent tariff that is set to come into effect on Thursday, making the South Asian country one of the most heavily taxed US trading partners in Asia.

The order finds India is “currently directly or indirectly importing Russian Federation oil,” and says it is “necessary and appropriate” to apply the new 25 percent tariff on Indian goods.

The US is India’s top export market, making up about 18 percent of exports and 2.2 percent of its GDP.

Foreign ministry spokesman Randhir Jaiswal said the US decision to impose additional tariffs was “extremely unfortunate,” as Delhi’s imports from Russia “are based on market factors” and done to ensure energy security for the 1.4 billion Indian population.

“We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” he said in a statement.

The 50 percent tariff could cut Indian GDP by 0.6 to 0.8 percent, according to Anupam Manur, an economist at the Takshashila Institution in Bangalore. The cut would risk India’s economic growth slipping below 6 percent this year.

As the combined tariffs will come into effect 21 days after the signing of the order, India still has time to negotiate with the Trump administration.

“There is speculation that the 25 percent additional tariffs might be a negotiating tactic by the Trump administration, which can be used as a leverage point against India in the upcoming round of trade talks,” Manur said.

“So, India will continue negotiating with the US, but the room for making concessions to the US is getting smaller due to the bad-faith nature of dealings.”

India will likely look at diversifying trade partners, as Washington becomes increasingly “unreliable trading partner with multiple ad-hoc tariff impositions.”

“The recently concluded FTAs (free trade agreements) with Australia and the UK have come at a good time. India will hope to sign a trading arrangement with Europe as well. India will also look to strengthen its trading relationship with the Middle East,” Manur said, highlighting how UAE and ����ֱ�� are India’s third and fifth largest trading partners, respectively.

As India exports about $81 billion goods annually to the US, the impact would be felt in India domestically in labor-intensive industries, such as gems and jewelry, apparel, textiles, auto parts, sea food and chemicals.

Lalit Thukral, president of the Noida Apparel Export Cluster, which employs about one million people, said the 50 percent tariff rate is “too much” for his industry.

“The 50 percent is out of reach now. We cannot do that. It means you have to close your factories, close your business … Buyers who are in the US are running away … They are placing orders to China, Vietnam or a third country. They will not come to India now,” he told Arab News.

“I have been in this field for the last 45 years and for the first time we have seen this kind of situation. This is a very horrible situation. Had we known that this trouble was coming we could have planned it, but we were not ready for this kind of thing to come.”

LONDON: UK Prime Minister Keir Starmer has defended his pledge to potentially recognize a Palestinian state next month, The Independent has reported.

Starmer’s defence of his move came after Israeli officials criticized his plan, and as British family members of Hamas-held hostages are set to stage a protest in London against the government.

Starmer said that there was a “sense of revulsion” about the level of suffering in Gaza among the British public.

He highlighted his intentions to only recognize a Palestinian state if Israel failed to meet a set of conditions relating to the war in Gaza.

It must address the humanitarian disaster in the enclave, reach a ceasefire with Hamas, and commit to reviving the path toward a two-state solution, he said.

The pledge was not a propaganda boost to Hamas, Starmer said, denying that the “terrorist organization” could play any role in a future government of Gaza.

The pro-Israel protest is set to take place in the English capital this weekend. Demonstrators will march on Downing Street to demand the release of the remaining hostages before any formal recognition of Palestine.

Israeli Ambassador to the UK Tzipi Hotovely accused Starmer and the government of “rewarding” Hamas’ actions through the pledge.

Kemi Badenoch, the opposition Conservative leader, said on Tuesday that Starmer had “made a mistake” and “what we need to focus on now is a ceasefire and getting the hostages home.”

Starmer told Channel 5 that the hostages held by Hamas and other militant groups had been held for a “very, very long time in awful circumstances, unimaginable circumstances, and Hamas is a terrorist organization, and that’s why I’m really clear about Hamas.”

He added: “They should release the hostages straight away and they should play absolutely no part in the governance of Palestine at any point.”

The prime minister highlighted the terms of his pledge, and said: “We do, alongside that, have to do all that we can to alleviate the awful situation on the ground in Gaza. We need aid in volume and at scale.”

The government had to do “everything we can” to get aid in, working with other countries “and it’s in that context that I set out our position on recognition.”