Washington: US President Donald Trump on Wednesday, August 6, slapped an additional 25 per cent tariff on goods coming from India as penalty for New Delhi’s continued buying of Russian oil.
Trump signed an executive order imposing the additional tariff less than 14 hours before his initial tariffs were to come into effect.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” the order reads. With this, the total tariff on Indian goods, barring a small exemption list, will be 50 percent.
While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days.
Goods subject to this order must also follow strict customs rules, including being admitted into US foreign trade zones under “privileged foreign status”.
The order also directs the US Commerce Department, State Department, Treasury, and other agencies to monitor other countries’ oil trade with Russia and recommend similar actions, if necessary.
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Trump to ‘very substantially’ raise tariffs on India in next 24 hours
Days ago, the United States president had said he will “very substantially” raise tariffs on India over the next 24 hours if New Delhi did not stop buying oil from Russia. “India has not been a good trading partner, because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent (tariff), but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil. They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy,” he had said.
