Washington: In a dramatic escalation of trade tensions, U.S. President Donald Trump on Wednesday signed a sweeping Executive Order doubling tariffs on Indian goods, raising duties to a total of 50% in response to India’s continued purchase of Russian oil. The move, framed as a national security and foreign policy imperative, marks a sharp deterioration in U.S.-India trade relations.
The nine-section Executive Order, grounded in statutes such as the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974, declares that India’s energy relationship with Russia “directly undermines the United States’ interests” and “supports a nation engaged in hostile actions that threaten global security.”
Effective 21 days from the signing date, the new tariff will apply to all qualifying Indian exports entering the United States, with exceptions only for goods already in transit and cleared before September 17.
“India’s continued import of Russian oil, whether directly or through intermediaries, constitutes a strategic alignment that poses an unacceptable risk to U.S. foreign policy objectives and undermines the international sanctions regime,” the Executive Order reads.
The decision follows Trump’s initial announcement last week of a 25% tariff. With Wednesday’s move, the administration has now imposed an additional 25%, effectively doubling the duty on affected Indian goods.
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