The White House announced Wednesday that it is imposing an additional 25% tariff on India, bringing the total levies against the major United States trading partner to 50%.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” President Donald Trump said in an executive order.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” the executive order reads.
The new tariffs are set to go into effect in 21 days, according to the order, while the previously announced 25% tariffs are set to take effect on Thursday.
Trump’s new tariff rate on India is now among the highest levies on any of the United States’ trading partners.
It’s the latest sign that Trump is following through on his threat to punish countries that buy Russian oil, as he’s increased his rhetoric in recent weeks over President Vladimir Putin’s invasion of Ukraine.
Trump’s order also directs members of his administration to “determine whether any other country is directly or indirectly importing Russian Federation oil,” and determine “whether and to what extent I should take action as to that country.”
Trump last week said that goods from India would be subject to a tariff of 25%, in addition to a “penalty” over the country’s purchase of military equipment and energy from Russia. But it was not clear at the time what such a penalty might look like.
Trump signaled Tuesday that he would raise the tariff on India “very substantially over the next 24 hours, because they’re buying Russian oil, they’re fueling the war machine.”
“And if they’re going to do that, then I’m not going to be happy,” Trump said on CNBC’s “Squawk Box.”
India, however, has said that it is being “targeted” by the U.S. and European Union “for importing oil from Russia after the commencement of the Ukraine conflict.”
India’s Ministry of External Affairs said in a Monday statement that “it is revealing that the very nations criticizing India are themselves indulging in trade with Russia.”
“Unlike our case, such trade is not even a vital national compulsion [for them],” the statement said.
Source: CNBC
MSK/
