ECONOMYNEXT – President Donald Trump has imposed an additional 25 percent tax on India for importing Russian oil after earlier slamming a 25 percent tariff on the country saying he will take similar actions on others.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” Trump said in an executive order which also detailed some exemptions.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent.”
Trump’s friendship with Vladimir Putin has broken down over the Russian leaders refusal to end the war with Ukraine and his insistence on occupying several border territories after failing to annex the entire country.
Trump said other countries that import from Russia may also face tariffs.
“The Secretary of Commerce, in coordination with the Secretary of State, the Secretary of the Treasury, and any other senior official the Secretary of Commerce deems appropriate, shall determine whether any other country is directly or indirectly importing Russian Federation oil,” Trump said.
The official shall “recommend whether and to what extent I should take action as to that country, including whether I should impose an additional ad valorem rate of duty of 25 percent on imports of articles of that country.”
It is not immediately clear what the impact of the new tariff will be on Sri Lanka. Sri Lanka also has companies that export material to India for final export to the US and other countries.
India has protested the taxes.
“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 overall objective of ensuring the energy security of 1.4 billion people of India,” a statement from the government of India said.
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.
“We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests.”
Trump is slamming taxes claiming emergency powers, which has been questioned. (Colombo/Aug06/2025)
