TARIFFS: US' 25% India Tariff On Top Of 'Reciprocal' Levy, Imposed In 21 Days

The confirmation of a 25% tariff to be imposed on India by the US for its purchases of Russian oil (see 'TARIFFS: Trump to Impose Additional 25% Tariff on India', 15:00BST) will be applied on top of the 25% 'reciprocal' levy due to come into force on 7 August according to the White House. The statement confirms that the tariff announced today "shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports." 

• As is often the case with US President Donald Trump's tariffs, there is a window of opportunity for further talks or a climb-down, with the additional 25% tariff due to come into force 21 days from now (Wednesday 27 August). 
• The measure marks the first time that the US has imposed 'secondary' sanctions/tariffs on Russia for its invasion of Ukraine (i.e. penalising not the country directly, but those nations trading with it in an effort to build pressure for the target country to change policy).
• As noted earlier, relations between China and India have shown signs of recent improvement (see 'INDIA: Modi To Visit China For First Time In 7 Years For SCO Summit, 14:58BST). These US secondary tariffs could result in an about-turn by India, given the increasing reliance on US trade (up from USD43.2bln in 2013 to USD91.2bln in 2024 according to COMTRADE data). Alternatively, they could further spur Delhi to look towards Beijing and Moscow for economic cooperation and investment if the US is viewed as an unreliable or belligerent partner.