Aug. 6 (UPI) — President Donald Trump on Wednesday raised tariffs on goods imported from India to 50% in response to the country’s continued purchase of Russian oil.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” President Donald Trump said in an executive order.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25%,” the executive order said.
This adds to the previous 25% tariffs set to take effect Thursday. The new tax will begin in 21 days.
The India tariff is now one of the highest on all of the United States’ trading partners, and it’s the latest sign that Trump is honoring his threat on countries that buy oil from Russia. The tariff is meant to put pressure on Russian President Vladimir Putin to encourage him to work toward a peace agreement with Ukraine.
On Tuesday, Trump said he would raise the tariff on India “very substantially over the next 24 hours, because they’re buying Russian oil, they’re fueling the war machine.”
“And if they’re going to do that, then I’m not going to be happy,” Trump said on CNBC’s Squawk Box.
In response to Trump’s Monday threat, India accused the United States, and the European Union, of hypocrisy, saying they began importing from Russia “because traditional supplies were diverted to Europe after the outbreak of the conflict.”
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation,” India’s foreign ministry said in a statement. “However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.”
It said the targeting of India was “unjustified and unreasonable.”
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”
Trump has long seen tariffs as a tool to right trade deficits and as a bargaining tool. He has also started to use it as a punitive measure to retaliate against countries for taking actions he disagrees with.