Trump announces additional 25% tariff on India, raising total tax rate to 50%

The White House announced on Wednesday that it will impose an additional 25% tariff on imported goods from India, bringing the overall tariff rate on Indian goods to 50% in the United States. According to the executive order signed by President Trump, he stated: "I determine that the government of India is currently importing oil from the Russian Federation, directly or indirectly." The order further states: "Under applicable law, goods imported from India to the United States will be subject to an additional 25% tariff." The new tariffs will take effect 21 days later, while the previously announced 25% tariff will start on Thursday this week. With this, Indian goods will face an overall tariff rate of 50% in the United States, making it one of the highest tariffs imposed by the US on major trading partners. The executive order also directs its government members to investigate whether other countries are "directly or indirectly importing Russian oil" and decide whether similar actions should be taken against those countries. As early as last week, Trump stated that India's imports of Russian military equipment and energy products will face a 25% tariff and additional "punitive" measures. However, it was unclear at the time in what form these "punishments" would be implemented. By Tuesday this week, Trump once again declared in an interview: "We will significantly increase tariffs on India in the next 24 hours, because they are buying Russian oil and funding conflicts. If they continue to do so, I will not stand idly by." India strongly responded to this. The Indian Ministry of External Affairs issued a statement on Monday, stating that India is being "deliberately targeted" by the US and EU for importing Russian oil, but "ironically, those countries criticizing India are also trading with Russia." Currently, India is the third largest consumer of oil in the world. After the outbreak of the Russia-Ukraine conflict, India has been importing oil from Russia at discounted prices to alleviate its domestic energy costs. The US's crackdown on such behavior is exacerbating trade and diplomatic tensions between the US and India. Analysts believe that Trump's move may further disrupt the global trade landscape and affect cooperation between the US and its allies in the Indo-Pacific region. As the Russia-Ukraine conflict continues, US sanctions against third countries are showing a more aggressive trend.