Trump Slaps Additional 25% Tariff on Indian Goods Over Russian Oil Trade, Total Import Duty Now 50%
PoriPurno News Desk | August 06, 2025
In a significant escalation of trade tensions, former U.S. President Donald Trump has signed an executive order imposing an additional 25% tariff on goods imported from India, bringing the total tariff rate to a striking 50% on most Indian exports to the United States.
The decision, announced on Wednesday, August 6, is being framed as a direct response to India’s continued oil purchases from Russia, despite ongoing U.S.-led sanctions and geopolitical pressure.
Executive Order Signed Just Hours Before Initial Tariffs Take Effect
According to a report by The Indian Express, the latest executive order was signed just hours before Trump’s previously declared 25% tariff was scheduled to take effect on August 7. The new 25% surcharge will be implemented 21 days later, effectively doubling the trade penalty for Indian exporters within a matter of weeks.
“This measure applies to all Indian goods entering the United States, except those that are already in transit,” reads the executive order signed by Trump.
The order explicitly states:
“I find that the Government of India is, directly or indirectly, continuing to import oil from the Russian Federation.”
A Punitive Response to Energy Ties with Moscow
The Trump administration views India’s ongoing purchase of Russian crude oil as undermining U.S. foreign policy objectives, especially in the wake of Russia’s international isolation over its actions in Ukraine and elsewhere.
Earlier this week, Trump had hinted at a significant increase in tariffs against India, criticizing New Delhi for allegedly buying Russian oil at discounted rates and then re-exporting refined petroleum products to global markets, including to Western countries.
Though he did not initially specify the extent of the tariff hike, his latest action confirms a total 50% import tax on Indian goods — a move likely to impact a wide range of sectors, including textiles, pharmaceuticals, auto parts, electronics, and food products.
India Yet to Respond Officially
As of Wednesday evening, the Indian government has not issued an official response to the new tariffs. However, earlier this week, New Delhi strongly criticized both the United States and the European Union for what it called “unfairly targeting India” over Russian oil imports.
“Both the U.S. and the EU continue to maintain commercial ties with Russia. It is hypocritical to single out India,” said a statement from India’s Ministry of External Affairs on Monday.
Analysts suggest that India may seek to challenge the tariff decision through diplomatic channels or international trade forums such as the World Trade Organization (WTO).
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White House Warns of Future Adjustments
The White House, under Trump’s leadership, has further warned that the executive order may be amended depending on how Russia or other “influenced foreign governments” respond.
This implies that the tariff rate could be increased further or eased, based on the geopolitical environment or retaliatory actions by affected parties.
Economic and Strategic Implications
The decision is expected to have far-reaching consequences for India-U.S. trade relations. In 2024, India exported goods worth $102 billion to the United States, making it one of the largest trading partners of the U.S.
Business leaders have expressed concern that such a steep tariff could cripple Indian exports, raise prices for American consumers, and weaken economic cooperation between the two countries — particularly in strategic sectors such as defense, pharmaceuticals, and information technology.
Meanwhile, political observers see the move as part of Trump’s broader campaign strategy, aimed at reasserting his “America First” stance while portraying India as a violator of U.S. strategic interests.
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