US President Donald Trump has signed an executive order imposing an additional 25 per cent tariff on Indian goods.
"I find that the Government of India is currently directly or indirectly importing Russian Federation oil....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 per cent," said the executive order.
Trump has said that he may further modify the order if Russia or India take steps to align sufficiently with the US on national security, foreign policy, and economic matters.
The total tariff burden,which now rises to 50 per cent, is set to come into force 21 days from now — on August 27. At a total rate of 50 per cent India is on par with Brazil at the top of Trump's tariff list.
After Trump's move, Brazil's President Luiz Inacio Lula da Silva said he needed to defend “the sovereignty of the Brazilian people in light of the measures announced by the President of the United States.”
On August 1, the Trump administration had enforced a 25 per cent tariff on Indian goods, citing India’s persistent oil imports from Russia and long-standing trade barriers.
On Monday, the US President had said he would be “substantially raising tariff paid by India” because India was purchasing Russian oil and selling a part of it in the open market for profits.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA,” Trump wrote on Truth Social.
On Tuesday, Trump warned of a steep hike in tariffs on Indian goods within 24 hours, citing New Delhi’s ongoing imports of Russian oil and what he called “obnoxious” trade barriers hampering American businesses.
Washington views India’s decision to buy oil from Russia as undermining its sanctions against Moscow.
Soon after the announcement, Congress jabbed Prime Minister Narendra Modi on X and asked him to show some courage and respond to Trump.
“Trump's friend Narendra Modi has imposed a 50% tariff on India. Trump is continuously taking steps against India, but Narendra Modi doesn't even mention his name. Narendra Modi — show some courage, respond to Trump.”