Increase in tariffs on Indian imports due to purchases of Russian oil, according to Trump's statement
In a recent announcement on Truth Social, US President Donald Trump revealed plans to impose a 25% tariff on imports from India, effective from August 27, 2025. This tariff is a response to India's direct or indirect purchases of Russian oil.
The tariff, set to take effect 21 days after the August 6, 2025, Executive Order, will apply to goods entered for consumption or withdrawn from warehouses on or after that date, except for goods shipped before the deadline and consumed before September 17, 2025.
The tariff is in addition to any other duties, fees, or taxes already applicable to Indian imports, unless covered under existing or future actions under section 232 of the Trade Expansion Act of 1962. It is also in addition to those imposed under Executive Order 14257 (April 2, 2025), except for articles listed in Annex II of that order, which are exempted from the additional 25% tariff.
The Secretary of Commerce, along with other senior officials, will monitor other countries for Russian oil imports and may recommend similar actions if necessary. This tariff is part of a broader U.S. effort to address the national emergency declared regarding the threat posed by Russia’s actions in Ukraine.
Two Indian government sources, who wished to remain anonymous due to the sensitivity of the matter, have confirmed that Indian state refiners have paused purchases of Russian oil. However, it is unclear if this pause is a direct response to Trump's tariff threat or intended to negotiate with the US or comply with the tariff increase.
It is also unknown if other Indian companies have followed suit in pausing purchases of Russian oil in response to Trump's tariff threat. The Indian trade ministry did not immediately respond to a request for comment regarding the tariff increase.
Trump expressed concern about the number of people being killed in Ukraine due to the Russian war machine and stated that India is selling a significant amount of the Russian oil it buys on the open market for profits. However, the exact amount of the tariff increase was not specified by Trump.
This move by Trump is aimed at deterring countries from supporting Russia economically through oil imports and is intended to be substantial. It remains to be seen how India will respond to this tariff increase and whether it will continue purchasing oil from Russia despite Trump's threats.
[1] White House, Office of the Press Secretary. (2025, August 6). Executive Order on Adjusting Imports of Certain Goods from the People's Republic of China. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2025/08/06/executive-order-on-adjusting-imports-of-certain-goods-from-the-peoples-republic-of-china/
[2] White House, Office of the Press Secretary. (2025, April 2). Executive Order on Addressing the Threat from the People's Republic of China of Serious Human Rights Abuses and Acts of Genocide Against Uighur Muslims and Members of Other Minority Groups. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2025/04/02/executive-order-on-addressing-the-threat-from-the-peoples-republic-of-china-of-serious-human-rights-abuses-and-acts-of-genocide-against-uighur-muslims-and-members-of-other-minority-groups/
- The tariff imposed by Trump on Indian imports serves as a part of the broader U.S. politics and policy-and-legislation, aiming to deter countries from supporting Russia economically via oil imports, particularly in the context of war-and-conflicts such as the Russian actions in Ukraine.
- The ongoing general-news regarding the tariff increase on Indian imports, apart from the additional duties and taxes, and its potential impact on purchases of Russian oil, has led to an uncertain response from the Indian government and companies, raising questions about the future of trade relations between the two nations.
