United States President Donald Trump on Wednesday issued an executive order imposing an additional 25 per cent tariff on Indian goods, citing New Delhi’s continued imports of Russian oil, sharply escalating tensions between the two countries after trade talks collapsed.

The new measure raises tariffs on some Indian goods to as high as 50pc, among the steepest faced by any US trading partner.

The move is expected to hit key Indian export sectors, including textiles, footwear, and gems and jewellery and marks the most serious downturn in US-India relations since Trump returned to office in January.

In an executive order issued from the White House, Trump 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 25pc.”

Trump said he determined it “necessary and appropriate” to impose an additional ad valorem duty on imports of articles of India since it was directly or indirectly importing Russian oil.

The tariff is set to take effect in three weeks and would be added on top of a separate 25pc tariff entering into force on Thursday. It maintains exemptions for items targeted by separate sector-specific duties, such as steel and aluminium, and categories that could be hit, such as pharmaceuticals.

Trump’s executive order does not mention China, which also buys Russian oil. A White House official had no immediate comment on........

© Dawn Business