Trump pulls the trigger, doubles India levy to 50%

President Donald Trump signed an executive order on Wednesday imposing an additional 25% tariff on all Indian goods entering the US, carrying out his threat made a day ago to penalise New Delhi's continued purchases of Russian oil.

- Shashank Mattoo

The additional 25%, due to take effect on August 27, puts India at par with Brazil as the two countries whose exports will face the highest levy of 50% on their goods. The duties would put Indian exporters at a significant disadvantage compared to their rivals in Bangladesh, Indonesia and Vietnam — which face tariffs of between 19% and 20% tariffs.

"I have received additional information from various senior officials on the actions of the government of the Russian Federation with respect to the situation in Ukraine," Trump wrote in the executive order.

"I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," he said.

India hit back, reiterating that the American actions are "unfair, unjustified and unreasonable". "India will take all actions necessary to protect its national interests," ministry of external affairs spokesperson Randhir Jaiswal said in a statement, adding that it was "extremely unfortunate" that the US had chosen to act against India "for actions that several other countries are also taking in their own national interest".