The president of the United States, Donald Trump, issued on Wednesday an executive order that imposed an additional rate of 25 percent on Indian goods, citing the continuous imports of Russian oil in New Delhi, strongly increasing the tensions between the two countries after commercial conversations collapsed.
The new measure increases tariffs on some Indian assets up to 50 percent, among the most steeps that any US trade partner face.
The measure is expected to reach the key Indian export sectors, including textiles, footwear and gems and jewels, and marks the most serious recession in relations between the United States and India since Trump returned to office in January.
In an executive order issued by the White House, Trump said: “I find that the government of India is currently importing directly or indirectly the oil of the Russian Federation.
“Consequently, and so consistent with the applicable law, India articles imported to the customs territory of the United States will be subject to an additional AD VALEEM of 25PC.”
Trump said he determined that it was “necessary and appropriate” to impose an additional AD VALEM duty on imports of articles in India, since it was important or indirectly that it imported Russian oil.
The rate will enter into force in three weeks and would be added in addition to a separate 25 -piece rate that enters into force on Thursday. It maintains exemptions for articles led by specific tasks of the separated sector, such as steel and aluminum, and categories that could be beaten, such as pharmaceutical products.
Trump’s executive order does not mention China, which also buys Russian oil. A White House official did not have immediate comments on whether an additional order that covers those purchases would be presented.
The development is worth repeated Trump’s threats to increase the rate of the rate in India for its oil purchases in Russia.
The Indian Ministry of Foreign Affairs said that the decision was “extremely unfortunate” and that New Delhi would take all the necessary actions to protect their national interests. “We reiterate that these actions are unfair, unjustified and irrational,” he said.
A senior Indian official said that New Delhi was blind for the sudden imposition of the new tax and the strong rate, since both countries continue to discuss commercial problems.
Trump said a day ago that the rate charged by India imports of 25 percent “very substantial” would increase during the next 24 hours, given the continuous purchases of Russian oil from India.
“India has not been a good commercial partner, because many businesses with us do, but we don’t do business with them. So we decided on 25 percent, but I think I’m going to increase that very substantially for the next 24 hours, because they are buying Russian oil,” he said. CNBC In a televised interview.
“They are feeding the war machine, and if they are going to do that, then I will not be happy,” Trump said, adding that the main point of conflict with India was that his tariffs were too high.
Trump said last week that he would impose a 25 percent tariff to the goods imported from India and added that the fifth largest economy in the world would also face an unspecified penalty, but did not give details. Later, Trump set up an acute attack and said: “I don’t care what India does with Russia. They can lead to their dead economies together, for what matters to me.”
During the weekend, two sources from the Indian government said Reuters that India would continue to buy Russia oil despite Trump’s threats. In turn, the White House Cabinet Deputy Director Stephen Miller accused India of effectively financing the Russian war in Ukraine buying Moscow oil.
Trump had made the same threat of substantially increasing tariffs a day ago.
In response to the threat, the Ministry of External Affairs of India (MEA) had issued a statement claiming that the United States and the European Union “attacked” New Delhi to buy Russian oil after Moscow invaded Ukraine in 2022.
The MEA highlighted in his statement that the same nations that criticized India were participating in trade with Russia, added that the exchanged goods include energy, fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment.
“With regard to the United States, it continues to import the Uranium Hexafluoruro of Russia for its nuclear industry, Palladium for its electric, fertilizers and chemical industry,” added Mea’s statement.
“In this context, India’s orientation is unjustified and irrational. Like any important economy, India will take all necessary measures to safeguard their national interests and economic security.”
India, the third largest oil importer in the world, is the biggest buyer of the Maritime Russian crude, a vital income of income for Russia, since the war in Ukraine for the fourth year.
The American tax in India exceeds those agreed by other nations in the agreements with the Trump administration. For example, the Vietnam rate is established in 20PC and Indonesia to 19 percent, with 15 percent levies on exports of the Japanese and European Union.
Last week, Trump said Washington had reached a commercial agreement with the archirival Pakistan of India that, according to Islamabad, would lead to lower tariffs in its exports.
From the short but deadly conflict from India with Pakistan in May, New Delhi has not been happy with Trump’s closeness with Islamabad and has protested, throwing a shadow on commercial conversations.
Despite the old public exhibitions of Bonhomie between Trump and Indian Prime Minister Narendra Modi, India has adopted a slightly harder position against the United States in recent weeks.
Trump has taken credit repeatedly for the high the fire of India-Pakistan who announced on social networks on May 10, but India disputes his statement that resulted from his speech and commercial threats.
By declaring the dead Indian economy in the water, Trump has put Modi and his party in a link. Until recently, the ruling party Bharatiya Janata was revashing support for the elections of the president of the United States. Their supporters held special sentences and muttered mystical songs for Trump’s victory. There was at least one created temple where a Trump’s sculpted image was worshiped.
But Trump has ignored the luxurious praise and called for energy imports of Russia and its tariff regime as not negotiable.
The Indian government said he was trying to find an answer consulting all the “interested parties”, an euphemism for angry companies whose hopes were the daring capacity to modi to play on both sides of the street.
That seems to have reached a dead end.
