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US President Donald Trump hinted at possible new tariffs on China over its Russian oil purchases, following a 25 per cent tariff hike on India. He warned of more secondary sanctions, but no final decision has been made yet.
United States President Donald Trump on Wednesday (Aug 6) said he could announce more tariffs on China similar to the 25 per cent duties announced on India over its purchases of Russian oil. Trump's statement comes a week after US Treasury Secretary Scott Bessent warned China that it could also face new tariffs if it continued buying Russian oil. Though the White House order announcing tariffs on India did not mention China, Trump said that it could happen, and issued a ‘secondary sanctions’ warning. The US imposed an additional 25% tariff on Indian goods, on top of a 25 per cent tariff announced previously, citing its trade with Russia. After the new levy, India will face the highest tariff of 50 per cent along with Brazil.
"Could happen," Trump told reporters, after saying he expected to announce more secondary sanctions aimed at pressuring Russia to end its war in Ukraine. "It may happen ... I can't tell you yet," Trump said. “We did it with India. We're doing it probably with a couple of others. One of them could be China,” the US president added. On being asked why he is signalling out India while there are other countries that are buying Russian oil, Trump answered, “It's only been 8 hours. So let's see what happens. You're going to see a lot more...You're going to see so many secondary sanctions.”
Trump's warning comes even as he said on Tuesday that the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if an agreement is struck. China is facing an August 12 deadline to reach a durable tariff agreement with the US administration, after Beijing and Washington reached preliminary deals in May and June to end escalating tit-for-tat tariffs and a cut-off of rare earth minerals.
Trump signed an executive order on Wednesday (Aug 6) announcing that India will face an extra 25 per cent tariff over and above the 25 per cent rate announced last week. While the 25 per cent rate is effective from August 7, 2025, the newly announced additional tariff will come into place 21 days from now. "The ad valorem duty imposed...shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports...," the order said. "I find that the Government of India is currently directly or indirectly importing Russian Federation oil. 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," it said.
The Ministry of External Affairs reacted to the additional import tariff and called it “unfair, unjustified and unreasonable”, adding that “India will take all actions necessary to protect its national interests”. "The United States has in recent days targeted India’s oil imports from Russia. 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," said the MEA in its statement.