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US doubles tariffs on India to 50% over Russian oil imports

06 Aug '25
2 min read
US doubles tariffs on India to 50% over Russian oil imports
Pic: Rawpixel.com / Shutterstock.com

Insights

  • The White House has announced an additional 25 per cent tariff on Indian imports, raising the total levy to 50 per cent, effective August 27.
  • President Donald Trump cited India's continued purchase and resale of Russian oil as undermining US sanctions on Moscow.
  • The Executive Order excludes certain products and signals potential future penalties for other nations trading with Russia.
The White House on Wednesday announced a sweeping escalation in trade measures against India, as President Donald Trump signed an Executive Order imposing an additional 25 per cent tariff on Indian imports, citing India’s continued purchase and resale of Russian oil. The move takes the total tariff burden on Indian goods to 50 per cent, with the new rate effective from August 27.

The administration had already enforced a 25 per cent tariff from August 1, alleging India’s sustained oil trade with Russia violated US efforts to economically isolate Moscow amid its ongoing war in Ukraine. The latest order, issued under emergency economic powers, adds another 25 per cent tariff and signals the US may consider similar penalties on other countries found importing Russian oil.

“India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,” President Trump said in a statement, accusing New Delhi of directly undermining US national security interests and foreign policy goals. “Because of this, I will be substantially raising the tariff paid by India to the USA.”

The Executive Order underscores that these tariffs will be imposed in addition to any existing duties, and explicitly excludes products listed under Annex II of Executive Order 14257 issued on April 2, 2025. It also tasks the Commerce Secretary, in coordination with other key officials, to monitor and recommend actions against other nations engaged in similar practices.

President Trump maintained that the heightened tariffs are part of a broader strategy to end the conflict. “The Russian Federation would not be facing these actions if they were to get a deal where people stop getting killed,” he said.

In a statement on Monday, India called Trump’s threat to raise tariffs over its Russian oil imports “unjustified and unreasonable.” The Ministry of External Affairs defended its energy trade as a necessity due to Europe-bound supply shifts and noted that the US had earlier supported such imports.

The United States continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its electric vehicles industry, fertilisers as well as chemicals, the ministry added.

ALCHEMPro News Desk (KD)

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