US President Donald Trump has issued an executive order imposing an additional 25% tariff on Indian imports, bringing the total tariff to 50%, over India’s purchases of Russian oil.
Gatekeepers News reports that the new rate will take effect on August 27.
The decision has sparked a strong reaction from India, with the foreign ministry describing the tariff as “unfair, unjustified, and unreasonable”.
“India will take all actions necessary to protect its national interests,” the ministry said in a statement.
Trump had earlier warned that he would raise levies on India, saying the country doesn’t “care how many people in Ukraine are being killed by the Russian War Machine”.
The White House justified the tariffs, stating that India’s imports of Russian oil undermine US efforts to counter Russia’s activities in Ukraine.
The additional tariff would significantly impact key Indian exports, including textiles, gems, jewelry, auto parts, and seafood, with major job-creating sectors likely to be hit.
According to the Global Trade Research Initiative (GTRI), the tariffs could make Indian goods far costlier in the US and cut US-bound exports by 40-50%.
India’s imports of Russian oil have been a contentious issue, with the US criticizing India’s stance. However, India has maintained that its decisions on sourcing oil are based on international market prices and global circumstances.
Ajay Srivastava, former Indian trade official and head of GTRI, advised India to remain calm and avoid retaliation for at least six months, recognising that meaningful trade negotiations with the US cannot proceed under threats or mistrust.
