Trump doubles tariffs on Indian imports

Trump doubles tariffs on Indian imports

WASHINGTON — The United States will impose a new 25% tariff on all imports from India, with the White House citing continued purchases of Russian oil and military equipment as an ongoing national security threat.

The move, announced in an executive order signed by President Trump, brings India’s total effective tariff rate to 50%.

The only other country to face tariffs at that level is Brazil, which the administration says it is pressuring due to an ongoing criminal case against former president Jair Bolsonaro.

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The action falls under the authority of the International Emergency Economic Powers Act and expands upon measures initially implemented to counter Russian aggression in Ukraine.

“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” stated in the order. “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.”

The new tariff will take effect 21 days after the order’s Aug. 6 signing — on Aug. 27 — unless goods were already in transit to the U.S. before that time. It will be applied on top of any existing duties or fees unless an exemption applies under U.S. trade law.

The administration’s decision to target India comes as part of a broader campaign to penalize nations that continue trade ties with Russia, especially in energy. According to the order, indirect imports — those routed through intermediaries or third countries — will also fall under scrutiny.

The President’s proclamation is part of a larger set of policies designed to “more effectively deal with the national emergency” stemming from Russia’s ongoing war in Ukraine and its global support network. India’s procurement of Russian crude and defense systems has raised concerns in Washington for months.

This latest action underscores Trump’s willingness to use broad trade tools to pursue geopolitical goals. Under the order, additional nations may face similar penalties if found to be importing Russian oil. The Department of Commerce and the U.S. Trade Representative are tasked with monitoring and recommending further action.

The administration left open the possibility of reversing the if India alters its behavior. “Should the Government of the Russian Federation or a foreign country impacted by this order take significant steps to address the national emergency … I may further modify this order,” Trump wrote.

India has not yet issued a formal response as of late morning on Wednesday.

Tomas Kauer - Moderator https://www.tomaskauer.com/