US President Donald Trump has signed an executive order imposing an additional 25 percent tariff on India. As per the White House, this decision comes as a response to New Delhi’s purchase of Russian oil.
On Tuesday, the US president, while speaking during in an interview with CNBC, stated that he will be ‘substantially raise’ the tariffs imposed on India.
“India has not been a good trading partner because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent, but I think I’m going to raise that rate quite substantially in the next 24 hours,” Trump told CNBC.
Trump had already imposed a 25 percent tariff on Indian goods going to the US. However, with this, the tariff against India is now up to 50 percent.
What does the White House order say?
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
Section 1. Background. Executive Order 14066 of March 8, 2022 (Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine), expanded the scope of the national emergency declared in Executive Order 14024 of April 15, 2021 (Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation), to include the actions taken against Ukraine by the Government of the Russian Federation. To address that unusual and extraordinary threat to the national security and foreign policy of the United States, Executive Order 14066 prohibited, among other things, the importation into the United States of certain products of Russian Federation origin, including crude oil; petroleum; and petroleum fuels, oils, and products of their distillation.
I have received additional information from various senior officials on, among other things, the actions of the Government of the Russian Federation with respect to the situation in Ukraine. After considering this additional information, among other things, I find that the national emergency described in Executive Order 14066 continues and that the actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.
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, which is directly or indirectly importing Russian Federation oil. In my judgment, imposing tariffs, as described below, in addition to maintaining the other measures taken to address the national emergency described in Executive Order 14066, will more effectively deal with the national emergency described in Executive Order 14066.
Sec. 2. Imposition of Tariffs. (a) I find that the Government of India is currently directly or indirectly importing Russian Federation oil.
(b) 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. Subject to section 3 of this order, this rate of duty 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, except for goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of this order; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on September 17, 2025.
India alleges ‘unjustified’ targeting from the US
The Indian government issued a strong response earlier this week after Trump warned of higher tariffs for New Delhi. In its statement, the Ministry of External Affairs accused the US and European Union of targeting New Delhi.
The MEA termed Trump’s threats to India as “unjustified and unreasonable,” while citing trade links between the US and European Union.
