U.S. Imposes Tariffs on Indian Goods Due to Business Deals with Russia
The United States has announced additional 25% tariffs on India's imports, primarily aimed at discouraging India from purchasing Russian-origin oil. This move is part of an effort to exert economic pressure on Russia in response to its ongoing war in Ukraine.
The tariffs, effective from August 27, 2025, are a continuation of prior tariffs on Indian imports, bringing the total tariff burden on affected Indian goods to 50%, one of the highest levels the US has imposed on any country.
These tariffs, as per Executive Orders under the International Emergency Economic Powers Act (IEEPA), highlight the US's continued treatment of Russia's actions in Ukraine as a national emergency and sees India’s imports of Russian oil as a threat to US national security and foreign policy.
The US government aims to disrupt Russia's energy export revenues by targeting countries that continue to import Russian oil directly or indirectly. By imposing tariffs not only on Russian products but also on countries enabling Russia's oil trade, the US seeks to isolate Russia economically and deter third countries from supporting the Russian energy sector.
This action reflects a continuation and intensification of sanctions originally started under the Biden administration, now escalated by the Trump administration to include secondary sanctions aimed at foreign intermediaries or partners such as India. Although China also imports Russian oil, tariffs on China remain undecided due to the complexity of US-China relations beyond the Russia context.
The additional tariffs on India serve as a strategic economic tool in the US effort to pressure Russia over the Ukraine conflict by disrupting its oil revenue streams and penalizing third-party countries that sustain Russian energy exports.
In June 2024, India was the second-largest buyer of Russian fossil fuels, after China, receiving oil and other energy carriers at significant discounts below the world market price. This move by the US government could potentially disrupt these oil deals, impacting India's energy supply and economy.
It is important to note that in 2024, India was one of the most important trading partners of the USA, with India primarily importing pharmaceuticals from the USA. The announcement of the additional tariffs on India came after the departure of Trump's special envoy, Steve Witkoff, from Russia.
The ongoing Ukraine conflict and US-Russia trade relations continue to be a significant geopolitical issue. With President Trump aiming to further weaken the economic base of the Kremlin by putting more pressure on major energy consumers like China and India, it remains to be seen how these tariffs will impact the global energy market and the ongoing conflict in Ukraine.
- The escalation of tariffs on India's imports by the United States, including those on oil purchases from Russia, is a strategic move within politics and policy-and-legislation, aimed at discouraging war-and-conflicts such as the ongoing one in Ukraine.
- The US's tightening of trade relations with India, through higher tariffs on various goods including oil, falls under the category of general-news and reflects the country's efforts to influence the actions of other nations in the context of war-and-conflicts, particularly the situation in Ukraine.
