Trump announces plans for additional 25% tariff on India as he turns up the pressure on Russia to find a truce
The White House on Wednesday announced an additional 25% tariff on India over the nation’s purchases of Russian oil, making good on a promise to substantially increase duties on the world’s fourth-largest economy.
The additional tariffs on Indian goods come with a three-week delay — likely giving time for additional negotiations as Trump is simultaneously trying to directly pressure Russian President Vladimir Putin to agree to a cease-fire as soon as this week to stop the fighting in Ukraine.
The announcement came in a new executive order that focused on India. The president is implementing these additional tariffs, in part, by invoking authority in the 1977 International Emergency Economic Powers Act (IEEPA) — which is currently being challenged in the courts.
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“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 Federation oil,” reads the order.
These duties will be “in addition to any other duties,” the text adds, meaning that India is facing the possibility of whopping 50% duties when today’s announcement is combined with 25% reciprocal duties set to go into effect at 12:01 am ET on Thursday morning.
But the text of the order released Wednesday delays these additional 25% duties for 21 days.
There is even a further delay — as in other recent announcements — for goods loaded onto boats by the expiration of the 21-day deadline, with these new tariffs set to fully take effect at 12:01 a.m. ET on Sept. 17 at US ports.
The India-focused announcement on Wednesday also came as US envoy Steve Witkoff met with Putin in Moscow for talks there ahead of a Friday deadline that Trump had previously set for Russia to agree to a truce or face potential sanctions itself.
White House officials have talked in recent days about how part of their strategy is to put potential pain on Russia’s allies who — they hope — will then pressure Putin and Russia itself.
Other major consumers of Russian oil — notably China — were not mentioned Wednesday, but the order does include a note that Trump’s team "shall determine whether any other country is directly or indirectly importing Russian Federation oil."
Ben Werschkul is a Washington correspondent for Yahoo Finance.
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