25% Tariff on India Over Russian Oil Purchases
US President Donald Trump has signed a new executive order imposing an additional 25% tariff on Indian imports, citing New Delhi’s ongoing purchases of oil from Russia.
The decision will raise the total tariff on Indian goods entering the United States to 50%, one of the highest rates ever imposed by the United States.
Trump issued the order on Tuesday evening that is set to take effect on August 27, according to the White House.
Delhi Condemns Move as Unfair
India’s Ministry of External Affairs issued a strong rebuttal on Wednesday, describing the move as “unfair, unjustified, and unreasonable.” The ministry reiterated that India’s energy policy is guided by national interest and warned that it will “take all actions necessary to protect its national interests.”
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking,” the statement read.
Trump: India ‘Doesn’t Care About Ukraine’
President Trump, who had earlier threatened to take punitive action over India’s oil deals with Russia, said during a press briefing that New Delhi “doesn’t care how many people in Ukraine are being killed by the Russian war machine.”
The White House later issued a formal statement justifying the decision, stating that “the Russian Federation’s actions in Ukraine pose an ongoing threat to US national security and foreign policy,” and that India’s imports “undermine efforts to counter Russia’s aggression.“
Washington confirmed that it is reviewing oil imports by other countries and may propose further penalties if necessary.
Energy Politics and Double Standards?
Oil and gas remain Russia’s top exports, with India, China, and Turkey among the leading importers. India’s purchases surged after Western sanctions forced Moscow to offer discounted rates.
India has pushed back against Western criticism in the past, noting that the US itself continued limited trade with Russia, with $3.5 billion worth of goods exchanged in 2024 alone. Indian officials argue the West redirected energy supplies toward Europe, compelling India to explore alternative options.
Foreign ministry spokesperson Randhir Jaiswal pointed out that the US had initially encouraged India to import Russian gas at the onset of the war, in a bid to stabilise global energy markets.
Tariffs Could Slash Indian Exports
According to the Global Trade Research Initiative (GTRI), the raised tariff could cut Indian exports to the US by 40–50%. GTRI founder and former trade official Ajay Srivastava advised Delhi to avoid retaliation in the short term and instead focus on resolving tensions through dialogue.
“India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade negotiations with the US cannot proceed under threats or mistrust,” he said.
Diplomatic Strain Despite ‘Friendship’
Despite past displays of camaraderie between Trump and Indian Prime Minister Narendra Modi, the latest decision highlights growing strategic divergence. Both leaders have previously praised each other at large rallies in Houston and Ahmedabad, but the economic pressure signals a shift in tone.
This is not the first time Trump has invoked secondary sanctions—similar measures were previously used against countries trading with Venezuela.
Wider Sanctions Loom
The tariff hike comes ahead of a Friday deadline, when the Trump administration is expected to announce broader sanctions on Russia and possibly a 100% tariff on countries continuing to buy Russian oil.
The escalating trade actions indicate that the US is willing to penalise even close partners as it intensifies efforts to isolate Moscow economically over the war in Ukraine.
Editing by M10News Foreign Desk | Contact: foreign@m10news.com
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