U.S. President Donald Trump has issued an executive order imposing an additional 25% tariff on imports from India due to its continued purchases of Russian oil. This raises the total tariff on Indian goods to 50%, one of the highest rates the U.S. has imposed.
The new tariffs will take effect in 21 days, on August 27, according to the executive order.
India’s Response
India’s Ministry of Foreign Affairs condemned the tariff hike, calling it “unfair, unjustified and unreasonable.” The ministry reiterated India’s previous stance on Russian imports and criticized the U.S. for imposing tariffs on actions other countries are also taking in their national interest.
“India will take all actions necessary to protect its national interests,” the statement declared.
President Trump had earlier criticized India for continuing to purchase Russian oil, accusing the country of ignoring the humanitarian cost of the war in Ukraine.
The White House issued a statement emphasizing that Russia’s actions in Ukraine threaten U.S. national security and foreign policy, necessitating stronger measures. It noted that India’s imports undermine efforts to counter Russia’s activities.
The U.S. also indicated plans to monitor other countries importing Russian oil and suggested further actions might follow.
Russia remains a top oil supplier to India, accounting for over 35% of its imports. India purchased approximately 1.75 million barrels of Russian oil per day in the first half of this year, according to commodity data.
Oil and gas exports are Russia’s largest revenue source, with major buyers including China, India, and Turkey.
Economic Impact and Industry Reaction
The tariffs would impose a 50% duty on key Indian exports such as textiles, gems and jewelry, auto parts, and seafood—sectors vital to India’s economy and employment. Electronics and pharmaceuticals, including products like iPhones, remain exempt for now.
India has previously criticized the U.S. for its tariff threats, noting that the U.S. encouraged Indian imports of Russian gas early in the conflict to stabilize global energy markets.
The tariffs follow diplomatic efforts including meetings between Trump’s envoy and Russian officials aimed at peace talks.
Trump indicated on Wednesday that the tariff on India is just the beginning, warning of “a lot more” secondary sanctions.
The Federation of Indian Export Organisations called the tariff hike “extremely shocking” and warned it could reduce U.S.-bound Indian exports by 40–50%.
Ajay Srivastava, former Indian trade official, urged calm and cautioned that meaningful trade negotiations cannot occur under threats or mistrust.
Author’s Opinion
The escalation of tariffs between the U.S. and India risks damaging a vital strategic and economic partnership at a time when global cooperation is crucial. While the U.S. aims to pressure India over Russian oil imports, punitive tariffs may backfire by disrupting trade and alienating an important ally. Constructive dialogue and multilateral approaches would better serve shared interests, balancing geopolitical concerns with economic realities.
Featured image credit: NPR
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