Trump slaps additional 25% US tariff on India for Russian ties, now 50%

United States President Donald Trump issued an executive order on Aug. 6 which hit India with an additional 25 per cent tariff over its purchases of Russian oil.

This increases India's tariffs to 50 per cent, among the highest rates imposed by the U.S.

He also warned that more "secondary sanctions" could be imposed on other countries in time to come.

India reacted strongly to the new tariff rate

According to Times of India (TOI), with the addition 25 per cent, India and Brazil currently face the highest tariff rates of 50 per cent.

This places India at a disadvantage compared to other nations which face lower duties.

India's Prime Minister Narendra Modi said at a conference that India's farmers were the government's priority and it would "never compromise" on their interests, even if it means negative economic consequences.

India's Ministry of External Affairs released a statement in response to Trump's executive order on Aug. 6:

1. The U.S. has been targeting India's oil imports from Russia the past few days.
2. India has already reiterated their position on these issues, including the fact that their imports are based on market factors and are done with the goal of ensuring the energy security of 1.4 billion people in India.
3. It is therefore extremely unfortunate that the U.S. is imposing additional tariffs on India when other countries are doing the same for their own national interest.
4. India reiterates that these actions are unfair, unjustified and unreasonable.
5. India will be taking all the necessary actions to safeguard its national interests.

Trump's executive order

Under Trump's executive order, titled "Addressing Threats to the United States by the Government of the Russian Federation", Indian imports to the U.S. will now face a 50 per cent tariff.

"I find that the Government of India is currently directly or indirectly importing Russian Federation oil.

Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the U.S. shall be subject to an additional ad valorem rate of duty of 25 per cent."

The base tariff rate will be effective from Aug. 7, while the supplementary charge of 25 per cent will come into effect 21 days later, on Aug. 27.

"You're going to see so much secondary sanctions"

Speaking at an event in the White House on Aug. 6, Trump was asked why India was specifically subjected to the new tariff measures, despite other countries also purchasing oil from Russia.

In response, Trump said that "it's only been eight hours" and that they will have to see what happens.

"You're going to see a lot more... You're going to see so much secondary sanctions," he added.

Trump previously warned India that they would face an additional penalty for their ties with Russia

In a post on Truth Social, Trump called India out for buying "massive amounts of Russian oil" and "selling it on the Open Market for big profits".

He accused India of enabling the Russians in their war against Ukraine, adding that "they don't care how many people in Ukraine are being killed by the Russian War Machine".

India's purchase of Russian oil

According to TOI, India imports approximately 88 per cent of its crude oil requirements from international markets.

Before 2021, India only imported 0.2 per cent of its crude oil from Russia.

However, following the Russian-Ukraine war, western sanctions led to lower prices of Russian oil and India decided to take advantage of it.

As a result, Russia became India's foremost oil supplier.

TOI reported that in July, India's daily oil imports reached approximately five million barrels, 1.6 million of which are from Russia.

Trump "getting very close to a deal" with China

Trump's executive order comes after he announced that the U.S. is close to securing a trade deal with China on Aug. 5, Reuters reported.

"We're getting close to a deal. We're getting along with China very well," Trump said.

He added that he will have a meeting with Chinese President Xi Jinping before the end of the year, but only "if [they] make a deal".

China currently has until Aug. 12 to reach a deal with the U.S.

Top photos via Narendra Modi/Facebook, The White House/Facebook