US President Donald Trump has issued an executive order on Wednesday hitting India with an additional 25% tariff over its purchases of Russian oil.
That will raise the total tariff on Indian imports to the United States to 50% – among the highest rates imposed by the US.
The new rate shall be “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order”, the executive order stated.
The US president had earlier warned he would raise levies, saying India “don’t care how many people in Ukraine are being killed by the Russian War Machine”.
“The Russian Federation’s actions in Ukraine pose an ongoing threat to US national security and foreign policy, necessitating stronger measures to address the national emergency,” according to a White House statement.
“India’s importation of Russian Federation oil undermines US efforts to counter Russia’s harmful activities.”
The White House said that India import and subsequent reselling of Russian oil on the market “further enables the Russian Federation’s economy to fund its aggression [in Ukraine]”.
It stated that the US president is using the tariff to “deter countries from supporting the Russian Federation’s economy”.
It added that the US will determine which other countries import oil from Russia, and will “recommend further actions to the President as needed”.
The threatened tariff hike follows meetings by Trump’s top envoy Steve Witkoff in Moscow, aimed at securing peace between Russia and Ukraine.
New Delhi had previously called Trump’s threat to raise tariffs over its purchase of oil from Russia “unjustified and unreasonable”.
In an earlier statement, a spokesperson for India’s foreign ministry, Randhir Jaiswal, said the US had encouraged India to import Russian gas at the start of the conflict, “for strengthening global energy markets stability”.
He said India “began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict”.
India also criticised the US – its largest trading partner – for introducing the tariffs, when the US itself is still doing trade with Russia.
Last year, the US traded goods worth an estimated $3.5bn (£2.6bn) with Russia, despite tough sanctions and tariffs.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the foreign ministry statement said.
