In a major policy shift, U.S. President Donald Trump revealed on Wednesday that he had signed a new executive order levying an additional 25% tariff on products imported from India. The move, he explained, is the result of India's continued acquisition of Russian oil—a step Washington considers to be in contradiction to its foreign policy and national security interests.
As reported by the White House, this new move is intended to support previous sanctions imposed on Russia for its offensive military actions in Ukraine. The move follows a previous statement made by the President last week about imposing new tariffs on Indian products.
The executive order stipulates that India is still importing oil from Russia, either directly or indirectly, in disregard of U.S. disapproval of such imports. "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 per cent," the order reads.
The new tariff regime shall come into force 21 days after signing the order. But commodities already despatched and in transit before that date—and cleared by American customs before September 17—shall be exempt.
"Subject to section 3 of this order, this rate of duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12.01 a.m.". Eastern Daylight Time 21 days from the date of this order, but excluding goods that (1) were being loaded on board a vessel at the port of loading and in transit by the last mode of transport before entry into the United States prior to 12.01 a.m. Eastern Daylight Time 21 days from the date of this order; and (2) are entered for consumption, or withdrawn from warehouse for consumption, prior to 12.01 a.m. Eastern Daylight Time on September 17," the order makes clear.
The newly imposed tariffs will be charged in addition to any current tariffs, unless the goods are eligible for exemptions identified in previous executive orders on trade.
In addition, all the items that come under the new tariff policy are required to pass through U.S. customs procedures, such as entering foreign trade zones in "privileged foreign status."
The order empowers President Trump with the power to suspend or modify the tariffs depending on changing circumstances—such as diplomatic news, retaliatory trade actions from India, or a change in either country's direction of policy.
Aside from penalizing India, the order also orders the Departments of Commerce, State, and Treasury—along with other agencies of the federal government—to keep a close eye on the other countries' activities regarding Russian oil and explore recommending tariffs of the same magnitude if appropriate.
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