U.S. to Impose Additional 25% Tariff on Indian Exports

On August 6, U.S. President Donald Trump signed an executive order to levy an additional 25% tariff on goods imported from India. The measure is justified by India’s “direct or indirect importation of Russian oil,” and will raise the overall tariff rate on Indian exports to the United States to 50%.

According to a statement issued by the White House, Trump asserted that the Russian government’s conduct and policies continue to pose an “extraordinary threat” to U.S. national security and foreign policy. In response to the national emergency triggered by the Russia-Ukraine conflict, the imposition of an additional ad valorem tariff on India—due to its direct or indirect importation of Russian oil—is deemed both necessary and appropriate. The statement clarified that, barring specific exceptions, the new tariff measures will take effect 21 days following the publication of the executive order.

Under a separate executive order signed by Trump on July 31, the United States will begin applying a 25% tariff on Indian exports starting August 7. When combined with the newly announced surcharge, the total tariff rate applicable to Indian goods entering the U.S. market will reach 50%.

In recent days, Trump has threatened to significantly escalate tariffs on Indian products, citing India’s procurement of Russian oil. He claimed that India not only purchases substantial volumes of Russian crude but also resells it on secondary markets for considerable profit, thereby supplying “fuel” to Russia’s war apparatus.

On August 6, India’s Ministry of External Affairs issued a statement reaffirming its position that the U.S. tariff increases and related actions are “unfair, unjustified, and unreasonable.” The ministry emphasized that India will take all necessary steps to defend its national interests. The statement also noted that India’s importation of Russian oil is driven by market conditions, with the primary objective of safeguarding national energy security.

Earlier this week, the Ministry of External Affairs stated that following the escalation of the Russia-Ukraine conflict, the United States had actively encouraged India to import Russian oil in order to support global energy market stability.

Following the Trump administration’s announcement of its so-called “reciprocal tariff” initiative in early April, officials initially expressed optimism about reaching a trade agreement with India. However, persistent disagreements over tariff structures and non-tariff barriers have stalled negotiations. India’s recent oil imports from Russia have since become a focal point of U.S. criticism.

Trump has continued to exert pressure on Russia to reach a ceasefire agreement with Ukraine, and on July 29, he issued a 10-day “final deadline.” The decision to impose additional tariffs on Indian exports, citing oil imports from Russia, is widely interpreted by international observers as part of Washington’s broader strategy to intensify pressure on Moscow.