US President, Donald Trump has announced sweeping and substantial tariffs on India, one of America’s most important trading partners.
In addition to a 25% tariff that is set to go into effect on Thursday, Trump also announced an additional 25% tariff on India that will go into effect later this month as punishment for importing Russian oil and gas.
Those combined penalties would bring the total tariff on goods imported from the world’s fifth-largest economy to a whopping 50% – among the highest the US charges.
The tariff was introduced through a presidential executive order signed, with today’s date, by the US President.
The order, posted on the White House’s website, read, “I have received additional information from various senior officials on, among other things, the actions of the Government of the Russian Federation with respect to the situation in Ukraine.”
“After considering this additional information, among other things, I find that the national emergency described in Executive Order 14066 continues and that the actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.
“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.”
Donald Trump
The new, Russia-related tariffs will take effect in 21 days, while the already-threatened 25% tariff is set to take effect on Thursday.
In his executive order on the additional tariffs, Trump left open the possibility that other importers of Russian oil products could be subject to higher tariffs, just as India had.
He also reserved the right to “modify” the executive order if any retaliatory action were taken — or if countries like India “take significant steps” to align with US policy goals.
An Escalation Of Trump’s Trade Battle With New Delhi
The latest executive order represents an escalation of Trump’s trade battle with New Delhi and his first use of so-called secondary sanctions on countries the US says are fueling Moscow’s war machine.
Trump earlier this week threatened India with the new tariffs, saying on social media that they were helping Russia wage war in Ukraine.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine.”
Donald Trump
India responded to Trump’s tariff escalation, defending its purchases of Russian oil.
A statement published on Wednesday by India’s Ministry of External Affairs noted that the country has already made clear it’s position “on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”
The statement added that it is therefore “extremely unfortunate” that the US should choose to impose additional tariffs on India “for actions that several other countries are also taking in their own national interest.”
It also hinted at potential retaliatory tariffs on American goods, saying that India will take all actions necessary to protect its national interests.
Up until recently, the relationship between Trump and Indian Prime Minister, Narendra Modi was considered exceptionally tight.
However, Trump has been outspoken in his belief that India’s economic practices are unfair to the US, and he has pledged to reduce trade deficits with foreign trading partners overall.
Trump has also grown increasingly frustrated with Russia, despite his previously warm relationship with that country’s President, Vladimir Putin.
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