US president has argued New Delhi indirectly helping fund Ukraine war as experts say move is ‘own goal’ against ally
The United States’ higher duties on Indian imports took effect on Wednesday, lifting rates on many categories to as much as 50% after the White House layered a new 25% penalty over an earlier 25% “reciprocal” tariff.
India’s continued purchases of Russian oil
The action is explicitly tied to India’s continued purchases of Russian oil. A U.S. Customs and Border Protection notice confirms that the additional 25% applies to articles “that are the product of India” entered for consumption on or after Aug. 27, in addition to the prior India-specific tariff.
Separate national-security tariffs
CBP provided a three-week in-transit exemption for shipments loaded before the deadline and arriving by 12:01 a.m. EDT on Sept. 17, and it exempted categories already covered by separate national-security tariffs, such as steel, aluminum and passenger vehicles.
The legal basis is Executive Order 14329 (Aug. 6) issued under IEEPA, with implementing details published in the Federal Register on Aug. 27.
The new rates hit garments and textiles, gems and jewelry, footwear, furniture, seafood (notably shrimp), and select auto components, while smartphones, pharmaceuticals and much energy/renewables equipment were flagged as exempt in earlier briefings and product lists.
Indian exports
Most Indian exports to the US (worth $87.3bn to the US last year, according to the US trade representative) now face steep duties, although some key products including smartphones are set to be spared, for now.
The action, confirmed in a notice by the US Department of Homeland Security earlier this week, prompted some economists to predict a precipitous fall in trade between the two countries.
The new rates hit garments and textiles, gems and jewelry, footwear, furniture, seafood (notably shrimp), and select auto components, while smartphones, pharmaceuticals and much energy/renewables equipment were flagged as exempt in earlier briefings and product lists.
“It’s real easy… India can get 25% off tomorrow if it stops buying Russian oil…,” said White House trade adviser Peter Navarro.
He has also sought to diffuse tensions with Moscow, inviting Vladimir Putin to Alaska for a summit earlier this month and even mooting a trilateral meeting with Volodymyr Zelenskyy as part of efforts to end Russia’s invasion of Ukraine.
India’s accusation
While Trump has accused India of indirectly funding Russia’s war against Ukraine through its purchases of Kremlin crude, he has not taken similar action against China, another major purchaser.
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