President Donald Trump signs Executive Order Placed on Wednesday An additional 25% tariff Buy in India Russian Petroleumbring the United States to Its allies to 50%.
Tariffs will take effect 21 days after the order is signed, meaning India and Russia may have time to negotiate import taxes.
Trump’s moves could compete for India’s economic trajectory, until recently, U.S. companies were looking to relocate their manufacturing sector. China also buys oil from Russia. But this is not included in the order signed by the Republican president.
As part of the negotiation period with Beijing, Trump imposed a 30% tariff on Chinese goods, a ratio smaller than his threat to New Delhi’s total import tax.
Trump previewed the tariffs for reporters on Tuesday. At an event held in the Oval Office on Wednesday Apple CEO Tim CookTrump confirmed 50% of the tariff numbers, whether the additional tariffs on India would be revoked if an agreement was reached between Russia and Ukraine.
“We’ll determine that later,” Trump said. “But now they’re paying a 50% tariff.”
The White House said Wednesday Trump can meet in person Next week, he tries to promote the end of the war, immediately joining Russian President Vladimir Putin.
The Indian government on Wednesday called the additional tariffs “unfortunate”.
“We reiterate that these actions are unfair, unreasonable and unreasonable,” Foreign Ministry spokesman Randhir Jaiswal said in a statement.
Jaiswal said India has made it clear that the country’s imports are based on market factors and are part of the overall goal of ensuring the energy security of its 1.4 billion people.
Ajay Srivastava, a former Indian trade official, said the latest tariffs placed the country among the most severely taxed trading partners of the United States, far beyond competitors such as China, Vietnam and Bangladesh.
“Tariffs are expected to make Indian goods more expensive and potentially cut exports to the United States by about 40%-50%,” he said.
Srivastava said Trump’s decision was “hypocritical” because China bought more Russian oil than India last year.
“Washington avoids targeting Beijing because of China’s leverage over key minerals, which is crucial to U.S. defense and technology,” he said.
According to the U.S. Census Bureau, the U.S. trade deficit with India reached $45.8 billion in 2024, meaning that the U.S. imports from India exceeded its exports. American consumers and businesses buy medicines, precious stones and textiles as well as clothing and other goods from India.
As the world’s largest country, India represents a way for the United States to deal with China’s influence in Asia. But despite Indian leaders’ insistence that they want peace, India has not supported the sanctions related to Ukraine by the United States and its allies in Moscow.
The United States and China are currently negotiating trade, with Washington imposing a 30% tariff on Chinese goods and facing a 10% retaliation tax on U.S. products from Beijing.
The planned tariffs on India contradict the Biden administration and others in the seven leading industrialized countries group, which encouraged India to buy cheap Russian oil through the price cap imposed in 2022. When market prices rose, Russian oil was collectively called US$60 per barrel.
The aim was to deprive the Kremlin of its income to fund its war in Ukraine, forcing the Russian government to sell oil at a discounted price or transfer money to expensive alternative transportation networks.
The price cap was introduced equally skeptical and hoped that the policy would prevent Putin from invading Ukraine.
The cap requires transport and insurers to refuse to deal with oil transport above the cap, although Russia is able to escape the hat by using the “shadow fleet” of old ships and old ships of insurance companies and trading companies in countries that do not enforce sanctions.
