The President of the United States, Donald Trump, has announced the implementation of an executive order imposing an additional 25% tariff on oil imports from Russia by India. Consequently, the total tariff on Indian imports will stand at 50%. This places India among the countries with the highest tariff rates by the US, report by BBC.
As stated in the executive order, the new tariff will be effective in 21 days, which is 27 August. On behalf of the foreign minister, India stated it has maintained a certain position regarding the Russian oil imports and added the tariff is “unfair, unjustified, and unreasonable.”.
The statement further added, “It is indeed very unfortunate that the US has decided to impose further tariffs on India on account of policies that many other nations are following in their interest.”
The statement concluded, “India will pursue all necessary actions to safeguard its national interests.”
Not long ago, the American president cautioned that he would impose new taxes, because India ‘doesn’t care how many people in Ukraine are being killed by the Russian War Machine.’ On Wednesday, the White House issued a statement saying that appropriate measures need to be taken regarding the national emergency because “the Russian Federation’s activities in Ukraine continue to be a significant risk to American security interests and foreign policy.”
It mentions how India’s purchases of Russian oil hamper US attempts to control Russia’s actions in Ukraine. It also stated that the US can track other countries that export oil from Russia and will “advise further steps to the President if necessary.”
China, India, and Turkey are the largest importers of oil and gas, Russia’s biggest export. The proposed tariff increase comes after meetings on Wednesday with Trump’s primary representative, Steve Witkoff, in Moscow, which is meant to bring calm to the Ukraine conflict.
Delhi deems Trump’s warning of increasing tariffs based on Russia’s oil purchase as “unjustified and unreasonable.” In public, India’s foreign ministry’s spokesman, Mr. Randhir Jaiswal, stated that the US had instigated India to purchase Russian gas at the beginning of the Russia-Ukraine conflict, “to fortify global energy markets.”
He further commented, saying India “imported from Russia because other sources of supply were offered to Europe after the conflict erupted.” The last displayed tariff is another sign that Donald Trump is willing to impose restrictions on Ukraine’s war on Russia, even for countries the US sees as friendly allies and partners with whom to do business.
This might serve as a caution that other nations could truly feel the pinch if Trump intensifies those kinds of sanctions after the deadline on Friday, when the US president is set to announce additional sanctions on Russia and impose 100% tariffs on all countries purchasing its oil.
This wouldn’t be the first time the Trump administration implemented secondary tariffs that also aim to punish buyers of Venezuelan oil. India has previously criticized the US, its biggest trade partner, on the imposition of the levy while the US is still trading with Russia.
Regardless of the tough sanctions and tariffs, the US trade value with Russia in 2022 stood at 3.5 billion dollars. India and Trump share a very friendly bond, which has been accompanied by mutual political rallies; however, they are still on opposing sides of the trade talks.
According to the think-tank, the Global Trade and Research Initiative, the new tariffs would greatly increase the prices of Indian products, lowering the US-bound exports by 40 to 50 percent.
Mr. Ajay Sribastava, the former Indian Trade Official and head of GTRI, said that “India should stay peaceful, avoid revenge for at least six months, and be determined that significant trade negotiations with the United States cannot move under threats or distrust.”
