US President Donald Trump has followed through on his threat to penalise India for buying and selling Russian oil, ramping up tariffs to 50%.
The White House announced that an executive order was signed today.
Trump said: “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.”
This order, the White House said, establishes a process for similar tariffs to be imposed on "other countries that directly or indirectly import oil from the Russian Federation".
The additional 25% tariff on imports from India will be effective from August 27, adding to an existing tariff level of 25%.
India's main exports to the US include generic pharmaceuticals, textiles, apparel, leather goods and jewellery; however, US exports are not a massive component of the country's economy at around 2% of GDP.
Other countries in firing line
Other countries could also be in line for similar extra tariffs, the White House said.
Whether or not other nations directly or indirectly import Russian Federation oil will be determined by the Secretary of Commerce, in coordination with the Secretary of State, Secretary of the Treasury and other senior officials, the statement said, with any further actions to be recommended to the President.
"The Russian Federation’s actions in Ukraine pose an ongoing threat to US national security and foreign policy, necessitating stronger measures to address the national emergency," the administration said in the statement.
"India’s importation of Russian Federation oil undermines U.S. efforts to counter Russia’s harmful activities.
"India’s subsequent reselling of this oil on the open market, often at significant profit, further enables the Russian Federation’s economy to fund its aggression.
"By imposing a 25% tariff, President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences on the Russian Federation for its ongoing aggressions."
Trump previously said that India was buying "massive amounts of Russian oil" and then selling much of it on the open market "for big profits".