Trump hits India with 25% tariffs over Russian energy purchases
Donald Trump, President of the United States (photo: Getty Images)
US President Donald Trump has imposed an additional 25% tariff on India due to New Delhi's trade ties with Moscow, according to an executive order issued by the American leader.
The order states that, based on information received from high-ranking officials, Trump concluded that "actions and policies of Russia continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States."
"To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian oil," the order specifies.
An ad valorem tariff is a duty calculated as a percentage of the value of a good, rather than a fixed amount per unit. For example, if a product costs $1,000 and the ad valorem tariff is 25%, then an import duty of $250 must be paid.
The order states that the president reserves the right to amend it if a foreign state takes reciprocal measures, or if Russia and the countries covered by the order begin cooperation on matters of national security and foreign policy.
Trump's threats
On Monday, August 4, US President Donald Trump promised to significantly increase tariffs against India. The American leader explained this decision by saying that India continues to import oil from Russia and doesn't care "how many people in Ukraine are being killed by the Russian war machine."
Already on August 5, the American leader clarified that the new tariffs are to take effect within 24 hours.
More details on whether this decision could force India to stop importing Russian oil can be found in the RBC-Ukraine article.
