DUBLIN,Ireland Aug 6-U.S. President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports, citing New Delhi’s continued purchase of Russian oil.
The new levy, on top of an existing 25% tariff already set to take effect this week, will raise the total duty on Indian goods entering the U.S. to 50% one of the highest rates currently imposed by Washington.
According to the White House, the latest tariff will take effect on August 27. A statement accompanying the order said India’s oil trade with Russia undermines U.S. efforts to pressure Moscow over its war in Ukraine, adding that stronger economic measures were necessary to address a “national emergency.”
The decision drew a sharp rebuke from India’s Ministry of External Affairs, which called the move “unfair, unjustified and unreasonable.”
“It is extremely unfortunate that the U.S. has chosen to penalize India for actions many countries are also taking in their own national interest,” the ministry said. “India will take all necessary steps to protect its national interests.”
Earlier this week, Trump had warned that India would face consequences for continuing to purchase Russian energy.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he said in a social media post, accusing India of profiting by reselling Russian oil on the global market.
The White House echoed these concerns in a separate statement, saying the administration will review imports from other countries that continue to engage in energy trade with Moscow and may recommend further sanctions.
Trump’s top envoy, Steve Witkoff, met Russian President Vladimir Putin in Moscow on Wednesday for what the White House described as “peace efforts,” although few details of the talks were disclosed.
India, which has significantly increased its purchases of Russian oil since the Ukraine war began, has consistently defended its actions. Foreign ministry spokesperson Randhir Jaiswal noted that India turned to Russian supplies only after Western nations diverted their traditional energy flows to Europe.
“India’s energy decisions are guided by market dynamics and the need to ensure energy security for 1.4 billion people,” Jaiswal said, also reminding Washington that it had once encouraged such imports for the sake of global market stability.
The tariff escalation could significantly disrupt trade between the two nations. Last year, the U.S. imported $87 billion worth of goods from India, including pharmaceuticals, electronics, and textiles, while exporting $42 billion in goods to the Indian market.
According to the Delhi-based Global Trade Research Initiative (GTRI), the new tariffs could slash Indian exports to the U.S. by 40–50%. GTRI’s founder, former trade official Ajay Srivastava, advised restraint, saying India should avoid retaliatory action and allow space for renewed negotiations.
“India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade talks cannot happen under pressure,” Srivastava said.
While some products like smartphones are exempt, Trump has reportedly considered a separate tariff on pharmaceutical imports, which would further impact India’s export economy.