Trump hits India with 50% tariff over Russian oil imports

NEW DELHI/WASHINGTON, Aug 6 – U.S. President Donald Trump has announced an executive order imposing an additional 25% tariff on Indian imports, specifically in response to India’s continued purchase of oil from Russia. This latest hike will bring the total tariff on Indian goods entering the United States to a steep 50%, one of the highest levies the U.S. has ever imposed on a key trading partner.

The new tariff is set to come into effect on August 27, giving businesses just 21 days to adapt. The decision has sparked criticism from India’s government, which labeled the move “unfair, unjustified, and unreasonable.” In a brief statement, India’s Ministry of Foreign Affairs noted that its position on importing Russian oil has already been made clear and emphasized that these purchases are driven by national interest and the need for energy security.

“India will take all actions necessary to protect its national interests,” the official response stated, signaling the beginning of what could become a significant diplomatic standoff.

A Tariff That Strikes at the Core of Indian Exports

This tariff will directly impact several major Indian export industries, including textiles, auto components, seafood, and gems and jewelry — all of which provide significant employment across India. These sectors are heavily dependent on access to the U.S. market, and experts warn that the increased cost burden will render Indian goods far less competitive in the American marketplace.

Electronics and pharmaceutical products, including smartphones and essential medicines, remain untouched by this tariff round — at least for now. However, trade analysts suggest that this may change depending on future developments in U.S.-India diplomatic relations.

The tariff announcement comes on the heels of a statement from the White House asserting that Russia’s actions in Ukraine pose a continuing threat to U.S. foreign policy and national security. Washington sees India’s continued energy trade with Russia as a setback to its broader push to cut Moscow off from the global economy.

President Trump defended his decision during a White House event, responding to questions by saying, “This is just the beginning. You’re going to see a lot more secondary sanctions.” His comments suggest a broader strategy of penalizing not only Russia, but any country that does business with it, even long-standing allies like India.

The president has made it clear that more countries could be added to the list of those facing U.S. trade penalties if they do not scale back imports from Russia. While India is not alone in buying Russian oil, it has become one of Moscow’s largest customers, with over a third of its oil supply now sourced from Russia. India is currently purchasing roughly 1.75 million barrels of Russian crude per day, making the trade relationship vital for India’s energy needs.

Diplomatic Fallout and Uncertain Trade Future

The move comes amid a backdrop of ongoing diplomatic engagement. On the same day the order was signed, President Trump’s top envoy, Steve Witkoff, was in Moscow for talks aimed at pushing forward peace negotiations between Russia and Ukraine. Despite those efforts, the U.S. continues to escalate economic pressure on nations engaging with Russia.

India’s position remains that its oil purchases are made in accordance with its national interest and that they began largely as a result of disruptions in global energy markets after the war began. In previous statements, Indian officials pointed out that traditional suppliers redirected exports toward Europe, leaving India with limited alternatives to meet its growing demand.

Indian trade associations have expressed strong disapproval of the decision. The Federation of Indian Export Organizations described the additional tariffs as “extremely shocking” and warned that they would impact more than half of India’s exports to the United States. Economists not affiliated with the government estimate that the new tariff could slash India’s exports to the U.S. by between 40% and 50%.

Ajay Srivastava, former Indian trade official and head of the Delhi-based Global Trade Research Initiative, advised restraint in the face of the new sanctions. “India is advised to stay composed, hold off on any countermeasures for the next six months, and understand that productive trade talks with the U.S. are unlikely to move forward in an atmosphere of pressure or distrust,” he said.

Despite public displays of camaraderie in the past — including high-profile joint political rallies between Trump and Indian Prime Minister Narendra Modi — this latest trade development reflects a growing divergence in policy. The U.S. has long been India’s largest trading partner, but this decision could push Delhi to further diversify its trading relationships.

While the White House insists the tariff move is a necessary step to defend American interests, critics argue it could backfire by alienating key allies and pushing them closer to alternative global partners.