Trump Raises India Tariffs to 50% for Buying Russian Oil
Trump Raises India Tariffs to 50% for Buying Russian Oil
The News
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.
The tariffs against India came as Trump’s special envoy, Steve Witkoff, met Wednesday in Moscow with Putin, days before the White House’s deadline for Russia to strike a peace deal with Ukraine.
Reactions
A White House official said the meeting “went well” and “the Russians are eager to continue engaging with the United States.”
In response to the steep levies, India said it is “extremely unfortunate that the US should choose to impose additional tariffs ... for actions that several other countries are also taking in their own national interest,” according to a statement.
“We have already made clear our 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,” an official spokesperson for India’s Ministry of External Affairs said.
“We reiterate that these actions are unfair, unjustified and unreasonable,” the statement continued.
Russia, for its part, defended India over its ongoing trade war with the U.S. and said Trump’s tariffs are “attempts to force countries to stop trade relations with Russia.”
“We believe that sovereign countries should have, and have the right to choose their own trade partners, partners in trade and economic cooperation,” Kremlin press secretary Dmitry Peskov said in a statement on Tuesday.
What's Next
The secondary tariffs that Trump has threatened against countries that buy Russian oil are still expected to be implemented Friday, the official said.
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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 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.
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