US President Donald Trump speaks with the press as he meets with Indian Prime Minister Narendra Modi in the Oval Office of the White House in Washington, DC, on Feb. 13, 2025.
Jim Watson | AFP | Getty Images
India’s set to face a 50% tariff after the White House announced an additional 25% levy on the South Asian country Wednesday over its purchases of Russian oil. That’s now among the highest duties on any of the U.S.’ trading partners.
New Delhi responded swiftly in a statement Wednesday, describing the U.S.’ decision to raise tariffs as “unfair, unjustified and unreasonable,” and that the country’s imports are based on market factors and to ensure energy security for its population.
Earlier on Monday, India’s Ministry of External Affairs called out what it says is selective enforcement in a statement, adding that “it is revealing that the very nations criticizing India are themselves indulging in trade with Russia.” It cited data that showed the EU’s trade was “significantly more” than India’s total trade with Russia.
And it seems that India isn’t the only country on U.S. President Donald Trump’s radar as he sets to punish countries that buy oil from Russia.
His latest executive order also directs his administration to “determine whether any other country is directly or indirectly importing Russian Federation oil,” and the actions, if any, that need to be taken on that country.
— Nur Hikmah Md Ali
— CNBC’s Erin Doherty contributed to this story.
What you need to know today
U.S to impose 50% tariff on India over Russian oil purchases. Trump announced in an executive order Wednesday that the new 25% duties will come into effect in 21 days, while the previously announced 25% rate will kick in Thursday.
Semiconductor tariffs of 100%. Unless companies can manufacture in the U.S., Trump said Wednesday that he would impose that tariff rate on imports of semiconductors and chips into the country.
U.S. stocks gain on Apple’s investment. Markets gained Wednesday after Apple’s shares climbed 5% on its increased U.S. manufacturing investment. The European Stoxx 600 was flat, while the Swiss Market Index fell 0.9% as Swiss officials met with their counterparts to continue tariff negotiations.
Apple commits $100 billion to U.S. expansion. Apple CEO Tim Cook and President Donald Trump unveiled the manufacturing boost Wednesday. That’s on top of the $500 billion that the iPhone maker announced in February, and brings its total U.S. investment to $600 billion over the next four years.
[PRO] Chip stocks have been going through a rough ride this earnings season. Texas Instruments, ON Semiconductor, Qualcomm, and Arm posted earnings beats but were met with steep sell-offs as investors demand more than solid execution.
And finally…
Technicians stand next to an oil rig which is manufactured by Megha Engineering and Infrastructures Limited (MEIL) at an Oil and Natural Gas Corp (ONGC) plant, during a media tour of the plant in Dhamasna village in the western state of Gujarat, India, August 26, 2021.
Amit Dave | Reuters
Why India is in Trump’s crosshairs when crude is not even sanctioned
India was once encouraged to buy Russian crude by the United States. It is one of the biggest buyers of Russian oil, according to data from Kpler, which shows total Russian crude exports amount to around 3.35 million barrels per day, of which India takes about 1.7 million.
Sara Vakhshouri, the founder and president of SVB Energy International, told CNBC the hefty duties announced by Trump are a “negotiation tactic,” aimed at “reclaiming lost U.S. oil market share in India and oil export declines since 2022, and securing equivalent export of other commodity to India.”
— Emma Graham