On August 6, President Donald Trump announced that he has signed an executive order which imposes an additional 25 percent tariff on imports from India, citing the country’s ongoing purchase of Russian oil. The new tariffs will be enforced on all eligible Indian goods entering the United States 21 days after the signing of the order, with the exception of shipments that are already in transit prior to the deadline and have been cleared before September 17. According to the White House, this decision is intended to reinforce measures that were previously implemented under sanctions against Russia due to its actions in Ukraine. The US President had previously announced a 25 percent tariff on India the week before. The order specifies that India is either directly or indirectly importing oil from Russia, which the United States views as a threat to its national security and foreign policy. ‘Consequently, and in accordance with applicable law, articles from India imported into the customs territory of the United States shall be subject to an additional ad valorem duty rate of 25 percent,’ the order states.
‘In accordance with section 3 of this order, this duty rate shall be effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time 21 days following the date of this order, except for goods that (1) were loaded onto a vessel at the port of loading and are in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. Eastern Daylight Time 21 days after the date of this order; and (2) are entered for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. Eastern Daylight Time on September 17,’ the order further elaborated. These duties will be in addition to the existing tariffs unless the goods qualify for specific exemptions, including certain categories specified in previous trade executive orders. Goods that are subject to this order must also adhere to stringent customs regulations, including being admitted into US foreign trade zones under ‘privileged foreign status’.Trump has maintained the power to alter the order in response to evolving situations, reactions from impacted nations, or major policy changes by Russia or India. Additionally, the order instructs the US Commerce Department, State Department, Treasury, and various other agencies to oversee the oil trade of other countries with Russia and to suggest comparable measures if deemed necessary.
