In a dramatic escalation of trade tensions, US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports, raising the total duty to 50%. The move, triggered by India’s continued purchase of Russian oil, will come into effect on August 27. This marks one of the highest US tariff rates ever levied on a major trading partner and is likely to severely impact key Indian export sectors.
India’s foreign ministry called the decision “unfair, unjustified and unreasonable,” emphasizing that Delhi had already clarified its stance on Russian oil imports. “It is unfortunate the US has chosen this route when other nations are also acting in their national interest,” a ministry statement read. The Ministry added that India would take all necessary steps to safeguard its interests.
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Trump defended the tariff hike by accusing India of ignoring the human cost of the Ukraine conflict. “They don’t care how many people Russia kills,” he said at a White House briefing. The White House also warned more secondary sanctions may follow as the administration ramps up pressure on Russian oil buyers worldwide.
The 50% tariff is expected to severely hurt Indian exports including textiles, auto parts, seafood, and gems—sectors that employ millions. Electronics and pharmaceuticals remain temporarily exempt. Experts warn the move could slash Indian exports to the US by up to 50%, with the Federation of Indian Export Organisations calling the decision “extremely shocking.”
