U.S. President Donald Trump on Wednesday signed an executive order increasing a new 25% tariff on Indian goods imported into the country, ratcheting up the trade tensions between the two nations.
The newest tariff, to be imposed 21 days after signing, will double the amount of duty on Indian imports to 50%.
The action comes after Washington's ongoing condemnation of India's oil commerce with Russia, which American officials contend threatens national security and is at odds with foreign policy interests during the raging conflict in Ukraine.
This action is on top of earlier sanctions imposed by the Trump administration, which blamed India for having high trade barriers and for continuing to buy oil from Russia in defiance of repeated admonitions.
The president had signaled the increase over the past days through his Truth Social posts. He blamed India for the purchase of "massive amounts" of Russian oil and threatened that the imposition of new tariffs could be announced "within 24 hours" — a threat which was fulfilled with the signing of this order.
The new duty will be imposed on all eligible Indian products arriving in the U.S. after the deadline for the 21-day period. Yet, shipments already on their way prior to the deadline and successfully cleared prior to September 17 shall be exempt from the surcharge.
Unless eligible for special exemption under existing trade rules, this 25% premium shall be charged on top of all prevailing tariff rates.
The order also generously defines "Russian Federation oil" as both crude and refined petroleum products of Russian origin, including those acquired indirectly through intermediary states or indirectly.
Besides India, the directive empowers the U.S. Secretary of Commerce and other federal agencies to track international energy commerce and suggest similar actions against other countries exporting Russian oil.
President Trump has reserved the freedom to modify the order based on new circumstances, including retaliatory actions by affected countries, changes in policy by India or Russia, or new inputs of intelligence.
This new trade step reflects the Trump administration's policy of using economic leverage to isolate Russia internationally and economically, employing tariffs as a means to deter nations from maintaining energy relations with Moscow.
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