US President Donald Trump has imposed an extra 25% tariff on Indian goods, blaming India for buying Russian oil and reselling it. The move takes the total tariff to 50%. India has called it unfair.
US President Donald Trump has imposed an additional 25% tariff on goods imported from India, saying the country continues to buy oil from Russia and make profits by reselling it. This takes the total tariff to 50%. On Wednesday, the US President signed an Executive Order imposed the extra 25% tariff on India. Earlier, in a Truth Social post, Trump accused India of supporting Russia's war effort by buying large volumes of Russian oil and then selling it on the open market for profits. "They don’t care how many people in Ukraine are being killed by the Russian war machine," Trump wrote, adding that he was "substantially raising" the tariff as a result.
Trump's Executive Order
In the new Executive Order signed on July 30, Trump confirmed that India is 'directly or indirectly' importing oil from Russia. The order applies a new ad valorem duty of 25% on Indian goods. This extra tariff will be effective 21 days after the date of the order, which is September 17, 2025, except for goods already in transit or warehoused before the deadline. The new duty will apply in addition to any existing tariffs, taxes or fees, unless specific exemptions under the Trade Expansion Act of 1962 are applicable.
"I have received additional information from various senior officials on, among other things, the actions of the Government of the Russian Federation with respect to the situation in Ukraine. After considering this additional information, among other things, I find that the national emergency described in Executive Order 14066 continues and that the actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States," the US President's order dated August 6 mentioned.
"In my judgment, imposing tariffs, as described below, in addition to maintaining the other measures taken to address the national emergency described in Executive Order 14066, will more effectively deal with the national emergency described in Executive Order 14066," Trump's order read further.
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Donald Trump's tariff warning to India
A day before signing the order, Trump had warned India of action over its continued Russian oil imports. During a press briefing, he was also asked about US imports of Russian chemicals and fertilisers. Trump replied that he was unaware of such imports and said, 'We will have to check'.
India had pointed out that the US itself continues to buy Russian goods, including uranium for nuclear plants and various chemicals. Indian officials said they were being unfairly singled out, despite similar actions by others. India's Ministry of External Affairs has strongly rejected Trump's remarks and the tariff hike, calling the targeting of India 'unjustified and unreasonable'.
The ministry said India's trade with Russia is based on energy security needs and market dynamics. After the Ukraine war began, Western countries rerouted fuel supplies to Europe, leaving India to find alternate energy sources to meet demand.
The impact of Trump's new tariff order
The new tariff order could affect a wide range of Indian exports to the US. Sectors like textiles, auto parts, engineering goods, chemicals, and others may see increased duty costs when entering the US market. With this, trade ties between India and the US may face new tensions.
