President Donald Trump signed an executive order on August 6, 2025, imposing an additional 25% tariff on Indian goods, bringing the total to 50%, as a penalty for India’s continued imports of Russian oil, according to Bloomberg. The decision, effective August 27, follows a 25% tariff announced the previous week, marking one of the highest U.S. levies on any trading partner. India’s Ministry of External Affairs called the action “unfair, unjustified, and unreasonable,” noting that other nations also import Russian oil to meet energy needs. The move comes as Trump seeks to pressure Moscow to end its war in Ukraine by targeting countries buying its energy.
India, the world’s third-largest oil consumer, imported about 1.75 million barrels of Russian crude daily in the first half of 2025, per Reuters. Trump criticized India for “fueling the war machine,” claiming it profits by reselling Russian oil, as stated in a CNBC interview. “India has not been a good trading partner… I think I’m going to raise that very substantially,” he said, citing a $45.8 billion U.S. trade deficit with India. India’s foreign ministry countered that its imports, which rose to 35% of its oil needs, were initially encouraged by the U.S. to stabilize global energy markets after the Ukraine conflict began, per BBC News. Spokesperson Randhir Jaiswal added, “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 50% tariff threatens India’s $87 billion export market to the U.S., hitting sectors like textiles, gems, jewelry, and auto parts, while pharmaceuticals and electronics remain exempt, per Al Jazeera. India’s commerce ministry is assessing the impact, with analysts like Sakshi Gupta of HDFC Bank warning that GDP growth could dip below 6% if exports falter, per Reuters. Trade talks, ongoing since December 2024, stalled over U.S. demands for access to India’s agriculture and dairy markets, which New Delhi refused to open, per Politico.
Key impacts of the tariff hike include:
- Economic Strain: Affects India’s textile, leather, and marine exports, risking GDP growth.
- High Tariff Rate: India joins Brazil at 50%, with Syria at 41% and Switzerland at 39%.
- Energy Needs: India defends Russian oil imports as critical for its 1.4 billion people.
Trump’s envoy, Steve Witkoff, met Russian officials in Moscow on August 6 to push for a Ukraine ceasefire, with Trump threatening 100% tariffs on Russian oil buyers if no deal is reached by August 8, per NBC News. India signaled openness to negotiations within the 21-day window before the new tariff takes effect, but no immediate retaliatory measures are planned, per Reuters. The escalating trade tensions mark a sharp downturn in U.S.-India relations, challenging years of growing economic ties.
Sources: Bloomberg, Reuters, BBC News, CNBC, Al Jazeera, Politico, NBC News
