President Trump on Wednesday said he would double tariffs on India to 50 percent to punish India for continuing to purchase Russian oil, complicating months of trade talks between the two countries that were already fraught.
The new tariffs are set to take effect three weeks from Wednesday, according to Mr. Trump’s executive order, and would make India one of America’s most highly taxed trading partners. Mr. Trump’s actions come a day after he said in a television interview that he would “substantially” increase the 25 percent tariffs on Indian goods that are expected to go into effect on Thursday, along with many other countries.
Mr. Trump has been unwilling to budge from his position that the United States needs to reduce its $46 billion trade deficit with India, with pharmaceuticals and electronics among the top exports. At the same time, India has sought to protect certain domestic production, such as dairy and agriculture, which are also politically sensitive.
India has so far held its ground. Shortly after Mr. Trump’s order, India’s foreign affairs ministry reiterated that its motives for importing oil from Russia were tied to the energy needs of its 1.4 billion people and it had already made its rationale clear.
“It is therefore extremely unfortunate that the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the statement said.
India, which gets about a third of its oil imports from Russia, is the second-largest importer of Russian oil after China. Turkey has also become a big buyer of Russian crude in recent years.
Indian officials have said before that India will continue to purchase Russian oil. The country doesn’t produce much of its own oil, but as the world’s most populous nation, with one of the world’s fastest-growing economies, its energy needs are huge.
Anupreeta Das covers India and South Asia for The Times. She is based in New Delhi.
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