Ramping up pressure on India before US negotiators are expected to reach India on August 25, US President Donald Trump on Wednesday doubled the tariffs on India to 50 per cent, but there is a 21-day window before the additional tariff of 25 per cent comes into effect, offering India a window to strike a trade deal.

A White House statement said that the US will impose “additional 25 percent ad valorem duty” above the 25 per cent reciprocal tariffs announced on August 1 to “deal with the national emergency stemming from Russia’s actions in Ukraine”. This tariff is deemed necessary and appropriate due to India’s “direct or indirect import of Russian Federation oil”, which the President judges will more effectively address the national emergency, the executive order said.

The additional tariffs dramatically raises pressure on India as most of its competitors such as Vietnam, Bangladesh and now China are not at lower tariffs. However, exporters said that US tariffs related uncertainty is already disrupting trade and that Indian exporters have grown wary of exporting to the US. About half of India’s total exports of $80 billion are, however, in the exemption list that include products such as pharma and electronics goods.

While the fresh order takes the total US tariffs to its highest on any country globally, it also offers a fresh window for discussion.