Kathmandu: US President Donald Trump has announced an additional 25% tariff on Indian imports in retaliation for India’s continued purchase of Russian oil, taking the total tariff rate on Indian goods to 50%—one of the highest the US has imposed on any country, according to a report by the BBC.
The new tariffs, set to take effect on August 27, are expected to hit key Indian export sectors such as textiles, gems and jewellery, seafood, and auto parts. Electronics and pharmaceutical products have reportedly been exempted for now.
In response, India’s Ministry of External Affairs condemned the move, calling the tariffs “unfair, unjustified and unreasonable,” and said India would “take all actions necessary to protect its national interests.”
Trump defended the measure by accusing India of ignoring the humanitarian crisis in Ukraine, stating, “India doesn’t care how many people in Ukraine are being killed by the Russian War Machine.” Speaking to the BBC at a White House event, Trump warned, “This is just the start. You’re going to see a lot more, so much secondary sanctions.”
The White House reiterated that the decision was in response to what it called an “ongoing threat to US national security” from Russia’s war in Ukraine. It said that India’s increasing oil imports from Russia were undermining US-led efforts to isolate Moscow economically.
Russia has become India’s top oil supplier, accounting for over 35% of its oil imports. Trade data shared with Reuters indicated that India bought around 1.75 million barrels of Russian oil per day during the first half of 2025.
India, which has long defended its energy ties with Russia, maintains that it began sourcing oil from Moscow only after traditional suppliers diverted shipments to Europe due to the war.
The Federation of Indian Export Organisations called the tariff decision “extremely shocking,” warning that it could affect more than half of India’s exports to the US. The Global Trade Research Initiative (GTRI) estimates a possible 40–50% drop in US-bound exports.
Ajay Srivastava, GTRI’s head and a former Indian trade official, urged Delhi to avoid immediate retaliation and pursue calm diplomacy, stating, “Meaningful trade negotiations with the US cannot proceed under threats or mistrust.”
The move signals a deepening rift between Washington and New Delhi, despite past friendly ties between Trump and Indian Prime Minister Narendra Modi.
–BBC