Washington [US], August 6 (ANI): US President Donald Trump on Wednesday signed an Executive Order imposing an additional 25 per cent tariff on imports from India in response to New Delhi’s continued purchase of Russian oil. The move raises the total tariff on Indian goods to 50 per cent.
According to the order issued by the White House, the decision was made on grounds of national security, foreign policy concerns, and relevant trade laws. The order stated that India’s import of Russian oil, whether directly or indirectly, poses an “unusual and extraordinary threat” to the United States.
The new tariffs will be implemented in two phases. While the initial duty takes effect on August 7, the additional 25 per cent levy will be enforced 21 days after the date of the Executive Order. The new duty will apply to all Indian goods imported into the US, except those already in transit or exempted under specific clauses.
“Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent,” the Executive Order states. It further clarifies that the rate “shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT, 21 days after the date of this order.”
The order makes an exception for goods that were “loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. EDT, 21 days after the date of this order.”
Trump’s Justification and Earlier Warnings
In an interview with CNBC on Tuesday, Trump criticized India’s ongoing oil trade with Russia, stating, “They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy.” He also warned of a substantial tariff hike, which has now materialized.
Earlier, Trump posted on his social media platform Truth Social that India was “buying massive amounts of Russian Oil” and reselling it in the open market for “big profits.” He added, “They don’t care how many people in Ukraine are being killed by the Russian War Machine… I will be substantially raising the tariff paid by India to the USA.”
The announcement follows Trump’s earlier decision to impose a 25 per cent reciprocal tariff on Indian goods and a penalty for oil imports from Russia.
India Reacts: “Unjustified and Unreasonable”
India swiftly responded, calling the US decision “unjustified and unreasonable.” A statement by the Ministry of External Affairs (MEA) said that India would take “all necessary measures” to protect its national interests and economic security.
The MEA pointed out that India began importing Russian oil only after traditional energy supplies were diverted to Europe following the Ukraine conflict. “The United States at that time actively encouraged such imports by India for strengthening global energy markets’ stability,” the statement said.
India also emphasized that its energy imports are guided by affordability and national needs. “Imports are a necessity compelled by global market conditions,” the MEA stated. “However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia—trade that is not even a vital national compulsion in their case.”
Hypocrisy Alleged: India Highlights US and EU-Russia Trade
The MEA cited that the European Union had goods trade worth EUR 67.5 billion with Russia in 2024, and EUR 17.2 billion in services trade in 2023. It added that European LNG imports from Russia in 2024 reached 16.5 million tonnes—a record high.
Regarding the US, the MEA noted continued American imports of Russian uranium hexafluoride for its nuclear sector, palladium for electric vehicles, fertilizers, and chemicals. “In this background, the targeting of India is unjustified and unreasonable,” the spokesperson reiterated.
India also reiterated its sovereign right to determine its energy policy. MEA Spokesperson Randhir Jaiswal previously stated, “You are aware of our broad approach to energy sourcing requirements, which looks at what is available in the market and the prevailing global situation.”
He also emphasized that India’s relationships with other nations are based on their own merit and not through the lens of third countries. “As far as India-Russia relations are concerned, we have a steady and time-tested partnership,” he added.
Global Impact and Economic Concerns
There are growing concerns that global crude oil prices could surge to $200 per barrel if India halts Russian oil imports. Such a development could severely harm global consumers and destabilize energy markets.
Trump’s announcement has come at a time when expectations were high for an interim India-US trade deal, which now appears unlikely amid escalating tariff tensions.
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