Donald Trump announced an extra 25 per cent tariff on India Wednesday night as 'penalty' for the continued import of Russian crude oil, and vowed similar measures against other countries that buy, directly or indirectly, from that country and fund cash-strapped Vladimir Putin's war on Ukraine.
He had earlier threatened tariffs of 100 per cent unless a peace deal is signed by August 9.
Trump's latest tax tirade takes total duties on import of Indian goods into the United States to 50 per cent - 20 per cent more the tariff on China and 31 per cent more than on Pakistan.
The 'penalty' tariff will take effect in 21 days.
India's response was swift and terse. A government spokesperson said the US' 'targeting' of India over Russian oil imports is "unfair, unjustified, and unreasonable",
"We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the objective of ensuring the energy security of the 1.4 billion people..."
"It is therefore extremely unfortunate the US should choose to impose additional tariffs on India... for actions that several other countries are also taking in their own national interest," the government said.
'In My Judgement...': Trump's Order
In an executive order signed earlier today Trump wrote, "I find the Government of India is currently, directly or indirectly, importing Russian Federation oil... in my judgement I determine it necessary to impose an ad valorem duty on imports of articles from India..."
The 50 per cent tariff hit comes hours after angry comments about India-US trade relations.
"India has not been a good trading partner... we settled on 25 percent... but I think I'm going to raise that substantially over the next 24 hours because they're buying Russian oil," he told a US broadcaster.
Those remarks, and others in a similar vein, have threatened to derail ties between two of the largest economies in the world, and possibly change geopolitical and security narratives worldwide, including drawing India, Russia, and Brazil (and possibly China, as a member of the BRICS) closer together.
That potential change has been underlined by Trump giving Pakistan a big rate cut - Islamabad's tariff is down to 19 per cent - and signing a new trade deal, including plans to develop Pak's oil reserves.
Trump Taxes "Our Friend, India"
On July 30 Trump decreed India would pay a 25 per cent tariff in addition to a (then unspecified) 'penalty' for continuing to buy oil and military equipment from Russia.
That was 48 hours before a deadline he had set for 'reciprocal tariffs' on a number of American trading partners, announced in April, but suspended to allow for negotiations.He also ranted about India's "strenuous and obnoxious non-monetary trade barriers".
"... India is our friend (but) we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world. And they have the most strenuous and obnoxious non-monetary trade barriers of any country."
In response to his criticism the Indian government pointed out that many western nations, including the United States, continue to import goods from Russia.
