On Wednesday, President Trump officially signed an executive order that adds a hefty 25% tariff on India’s purchases of Russian oil. With this, the total tariffs that the U.S. has enforced on India now reaches a staggering 50%.
This new tariff is set to kick in 21 days post-signing, giving both India and Russia a little breathing room to possibly discuss and negotiate these import taxes with the U.S. administration.
What’s notable is that this move could significantly alter the economic ambitions of India. U.S.-based companies have increasingly viewed India as a potential replacement for Chinese manufacturing, essentially what Trump had been aiming at with his tariff policies. Interestingly, while China also imports oil from Russia, it won’t be subjected to these new increased tariffs.
As we know, ongoing trade talks between the U.S. and China continue, with the U.S. already imposing a 30% tariff on Chinese goods, alongside facing a 10% retaliatory tax from Beijing on American imports.
Stay tuned for updates on this developing story.
