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In a major policy move, President Donald Trump has imposed an additional 25 percent tariff on Indian imports, citing India’s continued purchase of Russian oil.
The decision was made official through an executive order signed on Wednesday. The new tariffs will be enforced 21 days after the signing and are in addition to the previously announced 25 percent country-specific tariffs.
This means Indian goods entering the United States will now face a total of 50 percent in tariffs, a sharp increase likely to impact bilateral trade volumes significantly.
President Trump said India’s direct or indirect import of Russian oil goes against American foreign policy, especially in light of Russia’s ongoing war in Ukraine.
He added that India’s purchases from Russia contribute to Moscow’s war effort, which he labeled an “unusual and extraordinary threat” to US national security and global stability.
Indian officials have not yet issued a formal response, but trade analysts warn the tariffs may disrupt supply chains and lead to retaliatory action by New Delhi.
Earlier, Trump said he would increase the tariff charged on imports from India from the current rate of 25 percent “substantially” over the next 24 hours, given India’s continued purchases of Russian oil.
“India has not been a good trading partner, because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil,” he told CNBC in a televised interview, adding that the main sticking point with India was that its tariffs were too high.
“They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy,” Trump added.
He did not provide a finalised tariff rate for India yet, however, he warned of a potential tariff increase in the coming days.
Meanwhile, declining energy prices could put pressure on Russian President Vladimir Putin to halt the war in Ukraine.
This is a developing story with more information to follow…
