Trump issues warning of significant tariff hike on Indian imports due to persisting purchase of Russian oil
In a significant move, President Donald Trump announced plans to substantially increase tariffs on goods imported from India due to India's continued purchase of Russian oil. The new tariff rate, if India continues to purchase Russian oil, stands at 50%, replacing the previous rate of 25%.
The increase, effective from August 27, 2025, comes as Trump ups the pressure on Russia's Vladimir Putin to reach a ceasefire with Ukraine within days, shortening his prior deadline. The rationale behind the increased tariff is to economically pressure India due to its import and resale of Russian oil, which the US claims supports Russia’s war efforts in Ukraine.
Initially, a 10% tariff was in place, but in April 2025, a 25% reciprocal tariff was imposed on India. Last week, Trump threatened a minimum 25% tariff on goods coming from India, effective at the end of this week, but on August 6, an additional 25% tariff was announced, making the total rate 50%.
There is a grace period for in-transit goods loaded before August 7 and arriving before October 5, which are subject to the earlier 25% rate instead of 50%. Exemptions apply mainly to pharmaceuticals, semiconductors, crude oil, natural gas, and critical minerals, reflecting strategic US concerns over certain sectors.
The Indian Ministry has stated that the targeting of India with tariffs is unjustified and unreasonable. India claims it is being unfairly targeted by the United States and European Union for importing oil from Russia. The Indian Ministry of External Affairs stated that India started importing oil from Russia because traditional supplies were diverted to Europe following the start of Russia's war on Ukraine.
Kremlin spokesman Dmitry Peskov stated that sovereign countries should have the right to choose their own trading partners. The Kremlin denounced the US plan to raise tariffs on Indian imports and considers statements threatening to force countries to stop trade relations with Russia as illegal. In response, India has threatened to take necessary measures to safeguard its national interests and economic security.
Higher tariffs could lead to a decrease in demand for goods from India and an increase in demand for goods from countries with lower tariffs or an increase in domestic production. The Kremlin has not specified whether it will retaliate against the US tariffs on Indian imports.
Anna Chernova contributed reporting.
[1] Source for tariff details: [URL] [2] Source for tariff rationale: [URL] [4] Source for tariff exemptions: [URL]
- The escalation of tariffs on goods imported from India, as a result of India's oil purchases from Russia, is not only a political move but also a part of the ongoing policy-and-legislation aimed at pressuring Russia in war-and-conflicts, particularly in Ukraine.
- The general-news of increased tariffs on Indian goods has been met with resistance from both India and Russia, with the Indian Ministry arguing that the tariffs are unjustified and unreasonable, and the Kremlin considering the US plan illegal and a threat to international politics and trade relations.
