By ABDULLAH 
In a significant escalation of economic tensions, U.S. President Donald Trump has signed an executive order doubling tariffs on Indian imports to 50% in retaliation for India’s ongoing imports of Russian oil. The move marks one of the most severe trade actions the U.S. has taken against a major ally in recent years.
Trump’s decision follows a week of heightened rhetoric against India. Just days ago, the President had warned of “substantial” tariff hikes, accusing New Delhi of aiding Russia’s war effort by continuing to purchase large volumes of Russian crude oil.
“India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,” Trump stated in a fiery post on his Truth Social platform. “They don’t care how many people in Ukraine are being killed by the Russian war machine.”
On Wednesday, August 6, Trump followed through by issuing an executive order imposing an additional 25% ad valorem duty, raising the total tariff to 50% on all Indian imports. The tariff will come into effect in 21 days, on August 27, 2025.
India’s Ministry of External Affairs immediately responded, labeling the tariffs “extremely unfortunate.”
“These actions are unfair, unjustified, and unreasonable,” the ministry said in a statement. “Our energy imports are based on market dynamics and the national interest of ensuring energy security for 1.4 billion people.”
Indian officials emphasized that multiple other countries — including China and Turkey — also import Russian oil, but have not been subjected to such harsh penalties.
Experts believe the new tariffs could cripple U.S.-India trade relations. The Global Trade Research Initiative (GTRI) warns that exports to the U.S. could drop by 40–50%, especially in sectors like:
- Textiles
- Footwear
- Gems and Jewellery
- Machinery and tools
“With such obnoxious tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, economist at Emkay Global.
Garima Kapoor, an analyst at Elara Securities, added, “This puts immense pressure on Indian exporters, could weigh on GDP growth, and might even trigger fresh currency volatility for the Indian rupee.”
The U.S. and India have been engaged in five rounds of stalled trade negotiations. Points of friction include access to Indian agricultural markets and India’s refusal to align with Western sanctions on Russia.
India ramped up Russian oil imports after traditional suppliers diverted resources to Europe following the Ukraine war. In 2024 alone, India’s imports from Russia hit a record $52 billion.
Despite these tensions, India remains the U.S.’s largest democratic partner in Asia, making this diplomatic rift particularly significant.
Trump has directed his administration to identify other countries that continue to import Russian oil and recommend similar punitive measures.
While the executive order did not mention China, which also buys significant volumes of Russian oil, analysts speculate additional tariffs could be on the horizon.
Meanwhile, India has hinted it may not retaliate immediately, hoping for renewed dialogue once the current pressure subsides. However, with PM Modi preparing for a diplomatic visit to China, a potential geopolitical shift may be underway.