US imposes 50% tariff on India, escalating tensions over Russian oil purchases

The White House announced on Wednesday that the United States will impose an additional 25% tariff on goods imported from India, raising the total tariffs on Indian imports to 50%.

The move significantly escalates trade tensions with one of America’s key economic partners.

In an executive order, President Donald Trump cited India’s continued importation of oil from the Russian Federation as the reason behind the decision.

“I find that the government of India is currently directly or indirectly importing Russian oil,” Trump stated in the 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 percent,” the executive order reads.

The new tariffs are set to go into effect in 21 days, according to the order.

 The new tariff is intended as a punitive measure against countries that continue to engage in energy trade with Russia, despite US efforts to isolate Moscow over its ongoing war in Ukraine.

Trump’s new tariff rate on India is now among the highest levies on all of the United States’ trading partners.

It’s the latest sign that Trump is moving on to making good on his threat to punish countries that buy Russian oil, as he’s increased his rhetoric in recent weeks over President Vladimir Putin’s invasion of Ukraine.

The Biden administration’s decision is being viewed as less about trade and more about forcing India’s geopolitical alignment.

Experts suggest Washington is pressuring New Delhi to distance itself from Moscow amid the Ukraine conflict.

"This is blackmail, this is bullying—where you're trying to push India to make a geopolitical choice," said a senior Indian official, speaking on condition of anonymity.