Donald Trump Raises Tariffs on India to 50% Over Russian Oil Purchases
The move threatens to reshape India’s economic ambitions, particularly its positioning as an alternative manufacturing hub for companies.
Quick overview
- President Trump signed an executive order imposing a 25% tariff on India for purchasing Russian crude, raising total duties to 50%.
- The order includes a 21-day grace period for India and Russia to negotiate with the U.S. to avoid the full impact of the tariffs.
- This move could hinder India's economic ambitions as a manufacturing hub for U.S. companies looking to reduce reliance on China.
- China was excluded from these sanctions despite importing large volumes of Russian oil, amid ongoing trade negotiations with the U.S.
U.S. President Donald Trump signed an executive order on Wednesday imposing an additional 25% tariff on India for its continued purchases of Russian crude, bringing total duties on the South Asian nation to 50%.
The measure includes a 21-day grace period before it takes effect—giving both New Delhi and Moscow a narrow window to potentially negotiate with Washington and avoid the full impact of the import levies.
The move threatens to reshape India’s economic ambitions, particularly its positioning as an alternative manufacturing hub for U.S. companies seeking to diversify away from China. That strategy had aligned with Trump’s broader agenda of reducing U.S. reliance on Chinese production through aggressive trade policy.
Will More Tariffs Target China Next?
Trump’s executive order also highlights the uneven treatment of major U.S. trading partners. Despite also importing large volumes of Russian oil, China was not included in this latest round of sanctions.
Beijing’s exclusion comes amid ongoing trade negotiations between the two superpowers. The U.S. currently maintains a 30% tariff on Chinese goods, while China has responded with a 10% retaliatory duty on U.S. exports.
Donald Trump to Announce Fed Board Nominee This Week
U.S. President Donald Trump is expected to name his nominee for the vacant seat on the Federal Reserve Board of Governors before the end of the week, following the departure of Adriana Kugler.
The announcement comes amid mounting pressure from the Republican president to replace Fed Chair Jerome Powell, as tensions grow between the White House and the central bank over interest rate policy.
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