Steep US tariffs take effect on India over Russia oil

President Trump’s steep tariffs on India as a penalty for buying Russian oil took effect on Wednesday, bringing the import tax imposed on the trading partner to 50 percent.

Trump said he would hit India with a 25 percent penalty for the oil purchases that he argued are helping fuel Moscow’s war efforts in Ukraine, on top of a 25 percent “reciprocal” tariff, by Aug. 27. White House trade adviser Peter Navarro said last week that he didn’t expect timeline to be extended.

The president, in his second term, has soured on Indian Prime Minister Narendra Modi and publicly fumed over India’s trade imbalance with the U.S. and its economic ties with Russia.

India is bracing for the new tariff rate, expecting it to impact $48.2 billion worth of exports, The Associated Press reported. The hardest hit sectors are expected to be textiles, gems and jewelry, leather goods, food and automobiles, according to the outlet, but Trump’s exemptions on pharmaceuticals and some electronic goods provide some relief for the country.

India has remained defiant about buying Russian oil and just after Trump announced he would increase the tariff on New Delhi to 50 percent, Modi shared that he held a “very good and detailed conversation” with Russian President Vladimir Putin. 

The Indian leader also recently met with Chinese Foreign Minister Wang Yi and said he is looking to improve relations between the two countries while facing friction with Trump.

The president, meanwhile, is working on setting up a bilateral meeting between Putin and Ukrainian President Volodymyr Zelensky to talk face-to-face about ending the war, but Russia has signaled it intends to slow-walk a deal.