Trump Doubles Down on India With 50% Tariff Over Russian Oil Imports

In a sharp escalation of trade tensions, former U.S. President Donald Trump has announced an additional 25% tariff on Indian goods, bringing the total import duty to 50%. The move is being justified by Trump as a punitive response to India’s continued import of Russian crude oil—a practice he claims indirectly funds Moscow’s war efforts in Ukraine. The decision, revealed late Wednesday, will come into effect within 21 days.

The new tariff brings India’s total duty rate well above that of other major economies—20% higher than the tariff on China and 31% higher than that on Pakistan.

This drastic step follows Trump’s earlier threat of imposing 100% tariffs on countries not supporting a peace deal in Ukraine by August 9. The latest decision has triggered immediate diplomatic backlash from New Delhi.

India reacts strongly to Trump tariff on India over Russian oil

In a swift response, a spokesperson for the Indian government described the United States’ move as “unfair, unjustified, and unreasonable,” emphasizing that India’s oil imports are driven by market needs and are essential for ensuring energy security for its 1.4 billion citizens.

“It is unfortunate that the U.S. has chosen to single out India for practices that are followed by several other nations as well,” the statement read. India also pointed to the hypocrisy of such measures, citing the European Union’s purchase of €67.5 billion worth of LNG from Russia in 2024, and highlighting that the U.S. itself continues to import Russian goods such as uranium hexafluoride, palladium, fertilizers, and various chemicals.

In his executive order, Trump justified the tariff by stating, “I find the Government of India is currently, directly or indirectly, importing Russian Federation oil… I determine it necessary to impose an ad valorem duty on imports of articles from India.”

Trump tariff on India threatens diplomatic and economic relations

Trump’s remarks on U.S.-India trade have become increasingly aggressive. He accused India of being “not a good trading partner” and slammed what he described as India’s “strenuous and obnoxious non-monetary trade barriers.” Despite acknowledging India as “our friend,” Trump claimed the U.S. has done limited business with India due to excessively high tariffs.

Interestingly, while India faces steep hikes, Pakistan has received favorable treatment, with Trump slashing tariffs on Islamabad to 19% and signing a new trade agreement that includes collaboration on energy exploration.

The timing of this move is also significant. The U.S. and India had been engaged in long-stalled trade negotiations, initiated during the Biden administration in December last year. A major sticking point has been India’s refusal to open its price-sensitive agriculture market to American exporters, prompting criticism from Trump.

Economic impact of new tariff remains limited, say experts

Despite the aggressive tone and punitive measures, Indian officials have tried to downplay the impact of the new duties. Government sources told media outlets that the economic hit from the original 25% tariff was projected to shave only 0.2% off India’s GDP, while other experts estimated a 0.3% slowdown. However, these estimates were made prior to the 50% tariff announcement, and economists may revise projections upward in the coming days.

The fallout from this decision could have far-reaching geopolitical implications. Observers warn it may drive India closer to BRICS partners like Russia, Brazil, and China, while weakening its economic and strategic ties with the United States.

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