Donald Trump has signed an executive order that adds a 25% tax on goods coming from India. The decision, which was made because India is still buying Russian oil, emphasizes the ongoing national emergency caused by Russia’s actions against Ukraine. This new tariff will go into effect 21 days after the order was made. It applies to all commodities from India that are brought into the United States.
An “Appropriate and Necessary” Action
The executive order is based on previous steps, such as Executive Order 14066 from March 8, 2022, which stopped the import of some Russian goods, such as crude oil and petroleum. President Trump says in the fresh order that he has received “additional information” that the “actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.”
The President has decided that it is “necessary and appropriate” to put an extra ad valorem tariff on imports from India that are directly or indirectly bringing in oil from the Russian Federation. The ruling makes it clear that this tariff is in addition to any other taxes or fees that already apply to these goods.
Important Parts of the Executive Order
The order gives a lot of important information and definitions:
Effective Date: The 25% tariff will start to apply 21 days after the order is signed. There are a few exceptions for things that were already on their way before this date.
“Indirectly Importing”: The directive says that “indirectly importing” means buying Russian oil through middlemen or third nations where the oil can be traced back to Russia. The Secretaries of State, Commerce, and Treasury must work together to make this decision.
Modification Authority: President Trump can change the order in the future if he gets new intelligence, if senior officials recommend it, or if a foreign government attacks the US.
Delegation: The directive gives the Secretary of State the power to put the new rules into effect, but only after talking to other cabinet members and officials. The Secretary of Homeland Security can make changes to the Harmonized Tariff Schedule of the United States with the help of the U.S. International Trade Commission.
The executive order is not the first thing the Trump administration has done about this. Before this, Trump publicly said he didn’t like India’s continued energy trade with Russia, even going so far as to call India a “dead economy” and say it was making money by reselling Russian oil. India has justified its commerce with Russia by saying that it needs the money for its economy and that the U.S. and its allies are still trading with Russia as well.