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Tony Romm


NextImg:Trump to Double India’s Tariff to 50% Over Russian Oil Purchases

President Trump announced on Wednesday that he would double tariffs on India, to 50 percent, beginning this month as punishment for the country’s continued purchase of Russian oil.

Mr. Trump coupled the new, punishing tariff level with a threat to impose similar penalties on other countries that buy Russian energy as he sought to use trade policies to pressure the Kremlin into resolving the war in Ukraine.

Under a new executive order, India would face a 25 percent tariff starting on Aug. 27 if it continues to buy oil from Russia. That would be in addition to a 25 percent duty that Mr. Trump announced last week, citing unfair trade barriers, which he plans to implement beginning Thursday.

Previewing his actions, Mr. Trump faulted the Indian government this week on social media for buying “massive amounts” of Russian oil and selling it on the open market, saying, “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”

India’s Foreign Ministry responded to Mr. Trump’s announcement late on Wednesday local time, reiterating that its motives for importing oil from Russia were tied to the energy needs of its 1.4 billion people. “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 ministry’s statement said. Indian officials signaled over the weekend that they did not intend to stop purchasing Russian oil.

Mr. Trump also laid the groundwork on Wednesday to impose similar 25 percent tariffs on other countries that purchase Russian energy. His executive order directed administration officials to “determine whether any other country is directly or indirectly importing Russian Federation oil,” and then report on whether they should face steep duties or other punishments.

India is the second-largest importer of Russian oil after China. In recent years, Turkey has also become a big buyer of Russian crude to meet its energy security needs and pursue growth targets.

Ajay Srivastava, a former trade official who founded the Global Trade Research Initiative, a New Delhi-based think tank, said he anticipated that the U.S. action would “push India to reconsider its strategic alignment, deepening ties with Russia, China, and many other countries.”

Anupreeta Das and Alex Travelli contributed reporting.