President Donald Trump signed an executive order August 6, imposing an additional 25% tariff on India, as punishment for India’s importing of Russian oil; the Russia-related tariffs would take effect in 21 days. This is on top of the 25% that Trump has vowed to impose on goods imported to the U.S. from India, which is scheduled to start on August 7. In toto, U.S. tariffs on Indian goods would rise to 50%.
In the year 2024, the top five goods that India exported to the United States were: pharmaceuticals ($10.9 billion); pearls and precious stones ($10.2 billion); petroleum products ($2.9 billion); telecom instruments ($2.2 billion), and ready-made garments ($1.8 billion). Overall, India exported $87.3 billion worth of goods to the United States; U.S. exports of goods to India were $45.8 billion, according to data from the United States Trade Representative’s office. India trades the largest share of its exports to any country, 17.2%, to the United States. A 50% tariff is intended to devastate India’s U.S.-bound exports.
The name affixed to Trump’s executive order, “Addressing Threats to the United States By The Government of the Russian Federation” is revealing. The executive order is based on previous executive orders issued by the war-mongering Joe Biden administration, which prohibit the importation of “certain products of Russian Federation origin, including crude oil; petroleum, and petroleum fuels, oils and products of their distillation.” In his executive order, Trump writes, “I have received additional information from various senior officials, on, among other things, the actions of the Government of the Russian Federation with respect to the situation in Ukraine,” that is, Russia is using the proceeds from the sale of its oil products to build its ‘war machine.’ In a social media post, Trump railed on August 4, “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine.”
Trump’s initial 25% tariff on Indian goods is extremely punitive. The second 25% tariff has nothing to do with trade, per se: it is an attempt to destroy India and the BRICS and break India from Russia. It is an attempt to cripple Russia and, even if Trump thinks it is a ‘bargaining chip,’ it would shift the war in Ukraine’s favor. This policy emanates from the City of London and Wall Street.
