- Trump imposes a 50% tariff on Indian imports over Russian oil purchases, effective 27 August.
- India calls the move “unfair” and warns it will act to protect its national interests.
- Trade experts predict Indian exports to the US could drop 40–50% under the new levy.
US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports, raising the total levy to 50%—one of the highest rates Washington has set against any nation. The move, set to take effect on 27 August, targets India’s continued purchases of Russian oil.
India Calls Tariff “Unfair and Unjustified”
India’s foreign ministry swiftly condemned the measure, calling it “unfair, unjustified, and unreasonable.” Officials reiterated that India’s energy policy is based on national interest, noting that New Delhi turned to Russian oil only after traditional suppliers diverted shipments to Europe following the Ukraine conflict.
The statement added that India would “take all actions necessary to protect its national interests,” but did not outline any immediate retaliatory steps.
US Cites National Security Concerns
According to the White House, India’s Russian oil imports undermine US efforts to pressure Moscow over its war in Ukraine. The administration linked the decision to the ongoing “national emergency” posed by Russian actions, warning that additional countries could face similar measures if they continue buying from Moscow.
Strategic and Economic Fallout
The tariff hike threatens to severely impact bilateral trade, with Indian goods potentially becoming too costly for US buyers. The Global Trade Research Initiative (GTRI) estimates India’s exports to the US could fall by 40–50% as a result. Analysts warn this marks a low point in Trump–Modi ties, which once featured public displays of friendship.
The move also underscores Trump’s willingness to apply secondary sanctions—punitive trade measures against allies—similar to those previously used against nations importing Venezuelan oil.
Broader Implications
With Trump threatening 100% tariffs on all countries purchasing Russian oil by the end of the week, the escalation against India may be a sign of broader trade and geopolitical disruptions ahead. Analysts caution that meaningful US–India trade talks will be difficult under the shadow of such punitive measures, urging New Delhi to avoid immediate retaliation while exploring diplomatic channels.
