Donald Trump India Tariff | US President Donald Trump on Wednesday announced an additional 25% tariff on Indian imports, raising the total tariff to 50%. The fresh trade measure follows a prior warning issued by Trump over India’s continued purchase of oil from Russia. According to the Executive Order signed on Wednesday, the new tariff will take effect 21 days later, on August 27.
The initial 25% tariff on Indian goods was implemented on August 1 in response to India’s tariffs on US products. The latest Executive Order expands the scope of duties and stacking provisions while stressing on US legislation that restricts Russian energy imports due to the Ukraine conflict.
Executive Order Links Tariff Hike to Russian Oil Trade
The nine-section order outlines various aspects of the decision, including the background and definition of Russian Federation oil. “To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,” the document states.
The order clarifies that Indian goods already in transit to the US via final mode of shipment before the effective date will be exempt from the additional duty. Trump also warned that any retaliatory action by trade partners could prompt further modifications to ensure the effectiveness of the order.
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The document also directed key US government departments and their secretaries to identify other countries importing Russian oil and recommend the extent of tariffs to be levied on them.
The order defines “Russian Federation oil” as crude oil or petroleum products extracted, refined, or exported from Russia, regardless of the nationality of the entity involved. It further explains that “indirectly importing” includes sourcing such oil through third countries or intermediaries when its Russian origin is traceable.
India, Russia Push Back; Hailey Warns Trump Against Alienating Ally
Following Trump’s warning, India criticized the US and EU’s stance as “unjustified and unreasonable,” especially in light of continuing Western trade with Russia. Russia also condemned the US pressure, with Kremlin spokesperson Dmitry Peskov stating, “We do not consider such statements to be legal.”
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Trump had accused India of “profiteering” by reselling Russian oil on the open market and claimed it was unconcerned about the ongoing war in Ukraine. “Because of this, I will be substantially raising the Tariff paid by India to the USA,” Trump said.
Just a day earlier, former US Ambassador to the United Nations Nikki Hailey had advised Trump not to strain ties with India, calling it an ally. She contrasted the action against India with the temporary tariff pause granted to China, which she described as a US adversary. Trump, however, proceeded with the order.
