US President Donald Trump has decided to impose additional tariffs of 25% on India due to its purchase of Russian oil, according to a presidential decree published by the White House.
“Thus, goods from India imported into the US will be subject to ad valorem duties of 25%,” the document says.
“I have determined that it is necessary and appropriate to impose ad valorem duties on imports from India that directly or indirectly purchase oil from the Russian Federation,” Trump explained in the decree.
Ad valorem duties are levied as a fixed percentage of the price of the goods, rather than per unit of cargo.
At the same time, the order specifies that it applies not only to oil of Russian origin, but also to petroleum products.
“The term ‘oil of the Russian Federation’ means crude oil and petroleum products extracted, refined, and exported from the Russian Federation, regardless of the nationality of the company involved in the production or sale of oil or petroleum products,” the document explains.
The term “indirect import” is also clarified, which, according to the US, means the purchase of Russian oil through intermediaries or third countries, whereby the origin of the oil can be traced back to Russia if the head of the Ministry of Trade, who consulted with the Secretary of State and the head of the Ministry of Finance, comes to such conclusions.
Last week, Trump announced that he was imposing 25% tariffs on Indian goods, as well as “penalties” for India’s purchase of Russian oil and weapons. Trump later expressed hope that India would stop buying Russian oil.
Trump then threatened to seriously increase tariffs on Indian exports, arguing that India’s purchases of Russian oil contribute to the continuation of Russia’s military aggression against Ukraine.
In turn, the Indian Foreign Ministry said that the US and EU’s dissatisfaction with Delhi’s purchase of Russian oil was unfounded. Trump’s threats were also condemned by the ruling party and the opposition in India.
