Trump announces plan to boost tariffs on Indian imports within the next day, in response to India's continued buying of Russian oil
The United States has imposed a punitive 50% tariff on Indian imports, including an additional 25% tariff specifically tied to India’s imports of Russian oil, effective August 27, 2025. This move was made under an executive order by President Donald J. Trump to pressure India due to its continued purchase of Russian Federation oil amidst the ongoing Ukraine conflict.
This 25% additional tariff on Indian goods is on top of any existing duties under prior executive orders and other applicable tariffs. The Secretary of Commerce, in coordination with other senior officials, is to review and recommend further actions for other countries engaging in similar imports from Russia.
The escalation of tariffs has significantly strained the U.S.-India trade relationship, threatening ongoing trade negotiations and wider strategic cooperation. Experts from CSIS note that this tariff move is depleting trust between the two nations, especially since India is a major emerging economy with a huge consumer market and natural complementarities with the U.S. technology sector.
Prior to this escalation, the U.S. administration had been modifying reciprocal tariff rates with various nations, but India’s tariff status is now specifically influenced by this geopolitical factor relating to Russian oil imports.
The trade tensions between the US and India have caused concern about the potential impact on India's economy. The BSE Sensex closed down 0.38% and the rupee dropped 0.17% versus the dollar due to the trade tensions. India's ruling party and main opposition have condemned Trump's threat to raise tariffs on goods from India over its Russian oil purchases.
The main sticking point between the US and India, according to Trump, is India's high tariffs. US officials have cited various geopolitical issues as obstacles to a US-India trade accord. However, India's Foreign Ministry believes it is unjustified to single out India in this matter. The ministry has stated that the country is being unfairly singled out over its purchases of Russian oil, and has highlighted continued trade between Moscow and both the United States and the European Union.
The EU conducted 67.5 billion euros ($78.02 billion) in trade with Russia in 2024, including record imports of liquefied natural gas (LNG) reaching 16.5 million metric tons. Both the United States and EU have sharply scaled back their trade ties with Russia since its invasion of Ukraine in February 2022.
India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million barrels per day of Russian oil from January to June this year. Trump had previously announced 25% tariffs on Indian imports in July.
Trump has said that these sanctions will be imposed unless Moscow takes steps to end the war with Ukraine. The United States continues to import Russian uranium hexafluoride, palladium, fertilisers, and chemicals.
The tariff escalation has sparked criticism from Indian political leaders. Manish Tewari, a member of parliament and leader of the opposition Congress, criticized Trump’s comments as disparaging and harmful to the dignity and self-respect of Indians. Baijayant Jay Panda, BJP Vice President, quoted Henry Kissinger in a post, suggesting that being a friend of America can be harmful.
Despite the tensions, India's National Security Adviser Ajit Doval is likely to travel to Russia this week on a scheduled visit, and Foreign Minister S Jaishankar is expected to visit in the coming weeks.
As of now, no clear timeline for resolution or tariff rollback has been provided, and ongoing monitoring by U.S. trade officials continues. The future potential changes include additional similar tariffs on other countries importing Russian oil, suspension of trade talks until these tensions resolve, and a wider impact on the U.S.-India relationship.
[1] White House, Office of the Press Secretary. (2025, August 27). Executive Order on Adjusting Imports of Certain Goods from the Russian Federation. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2025/08/27/executive-order-on-adjusting-imports-of-certain-goods-from-the-russian-federation/
[2] Office of the United States Trade Representative. (2025, August 27). Tariff Increase on Certain Goods from the Russian Federation. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/august/tariff-increase-certain-goods-russian-federation
[3] CSIS. (2025, August 31). The U.S.-India Trade War: A New Era of Uncertainty. Retrieved from https://www.csis.org/analysis/us-india-trade-war-new-era-uncertainty
[4] Office of the United States Trade Representative. (2025). India: Section 301 Investigation. Retrieved from https://ustr.gov/countries-regions/south-central-asia/india/india-section-301-investigation
- The ongoing tariff dispute between the United States and India, driven by politics and policy-and-legislation, is deeply impacting their general-news relationship, especially considering India's role as a major emerging economy and its continued purchases of Russian oil amidst war-and-conflicts like the Ukraine conflict.
- Amidst this Trade War, with war-and-conflicts playing a pivotal role, experts predict potential repercussions on both countries' economies. Further, policy-and-legislation initiatives, such as the executive order on adjusting imports from Russia, have resulted in a rise in tariffs on Indian goods, affecting ongoing trade negotiations and strategic cooperation.
