President Donald Trump signed an executive order Wednesday to place an additional 25% tariff on India for its purchases of Russian oil, bringing the combined tariffs imposed by the United States on its ally to 50%.
The tariffs would go into effect 21 days after the signing of the order, meaning that both India and Russia might have time to negotiate with the administration on the import taxes.
Trump’s moves could scramble the economic trajectory of India, which until recently was seen as an alternative to China by American companies looking to relocate their manufacturing. China also buys oil from Russia, but it was not included in the order signed by the Republican president.
As part of a negotiating period with Beijing, Trump has placed 30% tariffs on goods from China, a rate that is smaller than the combined import taxes with which he has threatened New Delhi.
Trump had previewed for reporters Tuesday that the tariffs would be coming. During an event in the Oval Office Wednesday with Apple CEO Tim Cook, Trump affirmed the 50% tariff number, not giving a specific answer as to whether additional tariffs on India would be dropped if there were a deal between Russia and Ukraine.
“We’ll determine that later,” Trump said. “But right now they’re paying a 50% tariff.”
The White House said Wednesday that Trump could meet in person with Russian President Vladimir Putin as soon as next week as he seeks to broker an end to the war.
The Indian government on Wednesday called the additional tariffs “unfortunate.”
“We reiterate that these actions are unfair, unjustified and unreasonable,” Foreign Ministry spokesman Randhir Jaiswal said in a statement, adding that India would take all actions necessary to protect its interests.
Credit: TIMESOFINDIA