President Donald Trump on Wednesday issued an executive order imposing an additional 25% tariff on Indian imports, citing New Delhi’s continued purchase of Russian oil, news agency Reuters reported. For the uninitiated, Trump has accused India of buying “massive amounts” of discounted oil and reselling it “on the Open Market for big profits.” An American official told Reuters on the condition of anonymity that these tariff measures are a reflection of mounting frustration over stalled trade talks with New Delhi, and not any realignment toward Pakistan.
New Levies Will Apply to Indian Goods Entering the US After 21 Days
According to the White House statement, the move is based on US findings that India is “directly or indirectly importing oil from Russia”, which the US views as fuelling the ongoing conflict in Ukraine.
With pointed references to the previous US “emergency measures” targetting Russia’s activities, the executive order states, “The Government of India is currently directly or indirectly importing Russian Federation oil.”
The tariffs will apply to goods entering the US after 21 days from the order’s date, with some exceptions for shipments already in transit, it reads.
‘National Emergency’ and Trade Laws
Trump’s authority to impose these tariffs comes under several American laws, including the International Emergency Economic Powers Act and the Trade Act of 1974. The executive order, signed by Trump Wednesday, cites the national emergency declared over “Russia’s invasion of Ukraine” and asserts that additional tariffs are “necessary” to respond to the “unusual and extraordinary threat” to US national security and foreign policy.
Escalating US-India Trade Tensions
On Tuesday, Trump told CNBC’s Squawk Box, “I think I am going to raise India’s tariffs substantially in the next 24 hours.”
US officials say the Trump administration is frustrated with India’s purchase of discounted Russian oil, which now makes up about one-third of the country’s crude imports.
Earlier this week, Trump took to his social media platform, Truth Social, and accused India of “selling Russian oil on the open market for big profits” and showing disregard for the human cost of the war in Ukraine.
India Reiterates Strategic Autonomy
The Ministry of External Affairs (MEA) reiterated India’s position, saying, “India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict.”
“Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country,” the MEA added.
External Affairs Minister S. Jaishankar also called for a “fair global order, not one dominated by a few.”
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