Washington, D.C. — U.S. President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports in response to India’s continued purchases of oil from Russia. This measure raises the total tariff on Indian goods entering the U.S. to 50%, placing it among the highest tariff rates levied by the United States.
The new tariffs are scheduled to take effect on August 27, 21 days from the order’s issuance.
India’s Ministry of External Affairs responded on Wednesday, reaffirming its stance on energy imports from Russia. In a statement, the ministry called the new tariff “unfair, unjustified and unreasonable,” emphasizing that the decision was “extremely unfortunate,” especially given that several other nations are also importing Russian oil in pursuit of their national interests.
“India will take all actions necessary to protect its national interests,” the statement added.
President Trump had previously warned of increased tariffs, accusing India of disregarding the humanitarian crisis caused by Russia’s invasion of Ukraine. “India doesn’t care how many people in Ukraine are being killed by the Russian war machine,” he said.
In a separate statement issued Wednesday, the White House reiterated that Russia’s actions in Ukraine represent a continuing threat to U.S. national security and foreign policy, thereby necessitating stronger measures. It stated that India’s oil trade with Russia undermines U.S. efforts to curb Moscow’s aggression and confirmed that further actions may be taken against other countries engaged in similar transactions.
Russia’s primary exports are oil and gas, with major buyers including China, India, and Turkey.
Impact on India-U.S. Trade
The newly announced tariffs are expected to significantly affect key Indian export sectors, including textiles, gems and jewellery, auto parts, and seafood—industries that contribute substantially to employment. However, electronics (including iPhones) and pharmaceuticals have been exempted for now.
The move follows recent meetings in Moscow between Trump’s envoy, Steve Witkoff, and Russian officials in an effort to facilitate peace negotiations between Russia and Ukraine.
India has consistently criticized the proposed tariffs, noting that the U.S. had initially encouraged the country to import Russian gas at the beginning of the conflict to stabilize global energy markets. According to a foreign ministry spokesperson, India turned to Russian supplies after its traditional energy sources were redirected to Europe.
The additional tariffs underscore the Trump administration’s readiness to extend Ukraine-related sanctions to U.S. allies and trade partners. Observers view this as a potential warning that similar actions could be imposed on other nations following the president’s threat of broader sanctions after Friday’s deadline—including a possible 100% tariff on countries that continue purchasing Russian oil.
This is not the first time the Trump administration has used secondary tariffs as a tool of economic pressure; similar measures have been applied to buyers of Venezuelan oil.
Despite being India’s largest trading partner, the U.S. has continued limited trade with Russia—reportedly amounting to $3.5 billion in goods last year—even amid sanctions.
Although President Trump and Indian Prime Minister Narendra Modi have previously described each other as friends and attended rallies together in both countries during Trump’s first term, the imposition of these tariffs highlights growing divergences in U.S.-India relations.
The Federation of Indian Export Organisations (FIEO) described the tariff decision as “extremely shocking,” estimating that it will impact 55% of India’s exports to the U.S.. According to the Global Trade Research Initiative (GTRI), the tariffs could result in a 40–50% drop in U.S.-bound Indian exports due to higher costs.
Ajay Srivastava, former Indian trade official and head of GTRI, advised restraint: “India should remain calm, avoid retaliation for at least six months, and recognise that meaningful trade negotiations with the U.S. cannot proceed under threats or mistrust.”