U.S. President Donald Trump has announced an executive order imposing an additional 25% tariff on Indian imports, bringing the total to 50%. The move comes in response to India’s continued purchases of Russian oil, which Washington says undermines its efforts to isolate Moscow over the Ukraine conflict.
The tariffs set to take effect on August 27 will significantly impact key Indian export sectors such as textiles, gems and jewellery, auto parts, and seafood. These industries employ millions and are crucial to India’s export economy. Electronics and pharmaceutical products remain exempt for now.
In a strongly worded response, India’s foreign ministry called the tariff “unfair, unjustified and unreasonable,” adding that New Delhi will “take all actions necessary to protect its national interests.” India reiterated that its oil purchases are based on energy security and national interest, especially after traditional suppliers diverted shipments to Europe following the outbreak of the Ukraine war.
The White House defended the move, saying Russia’s actions in Ukraine continue to threaten U.S. national security, and that India’s imports of Russian oil weaken the global response to the Kremlin. Trump’s administration hinted that other nations buying Russian oil—such as China and Turkey—could also face similar penalties.
Ironically, critics have pointed out that the U.S. itself traded goods worth $3.5 billion with Russia last year, despite ongoing sanctions.
The Federation of Indian Export Organisations (FIEO) called the decision “extremely shocking,” noting that it affects 55% of India’s exports to the U.S. According to the Global Trade Research Initiative (GTRI), these tariffs could reduce India’s exports to the U.S. by up to 50%.
Trade experts urge India to avoid retaliation for now and focus on diplomacy. “India should remain calm and recognise that meaningful trade negotiations cannot proceed under threats,” said GTRI head Ajay Srivastava.
The move underscores the fragile state of U.S.-India relations and signals Trump’s readiness to pressure even strategic allies in pursuit of his foreign policy goals.
