Trump imposes additional 25% tariff on India for purchasing Russian oil

Business Standard

a day ago

US President Donald Trump on Wednesday signed an executive order imposing an additional 25 per cent tariff on goods imported from India, citing India's continued purchase of Russian oil as a violation of sanctions and a threat to US foreign policy.
In a statement released by the White House on Wednesday, the US administration said the decision is a direct response to India's 'direct or indirect' import of Russian crude. 'The Government of India is currently directly or indirectly importing Russian Federation oil,' the order noted, adding that such imports undermine efforts to isolate Russia amid its ongoing conflict with Ukraine.
The latest duty imposition ties India with Brazil for the highest tariff rate of all countries.
The US order, issued under powers granted by the International Emergency Economic Powers Act and related statutes, invokes the continuation of the national emergency declared in 2022 against the Russian Federation. 'The actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States,' the statement read.
Citing this "ongoing threat", the US President said it is 'necessary and appropriate to impose an additional ad valorem duty on imports of articles of India.' The measure, he added, is designed to more effectively deal with the crisis and 'maintain the other measures taken to address the national emergency.'
Trump tariffs to apply from Aug 27
According to the order, the 25 per cent duty will apply to all eligible Indian goods entering the United States on August 27 -- 21 days from the date of the order. However, there are certain exemptions: the tariff will not apply to shipments already in transit prior to that deadline, or those cleared before September 17, 2025.
After the order, the total tariff on Indian goods, barring a small exemption list, will be 50 per cent. While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days.
The duty will be in addition to existing tariffs and trade levies, unless the goods fall under specific exceptions. 'The ad valorem duty imposed in section 2 of this order shall be in addition to any other duties, fees, taxes, exactions, and charges,' the document stated.
The White House also clarified what it means by 'indirect' imports: 'purchasing Russian Federation oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Russia.'
If necessary, the US administration may issue further directives or expand the list of targeted countries. 'Each executive department and agency shall take all appropriate measures within its authority to carry out this order,' the statement said.
India defends energy relationship with Russia
Earlier this week, the Ministry of External Affairs (MEA) issued a sharp rebuttal to Trump's criticism, calling his remarks over Russian oil imports 'unjustified and unreasonable'. It stressed that India's energy cooperation with Russia was driven by necessity and remained far smaller than the scale of Western trade with Moscow.
'India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict,' the MEA said in a statement.
The ministry also recalled that Washington had initially welcomed India's move to purchase Russian oil. 'The United States at that time actively encouraged such imports by India for strengthening global energy market stability,' it said.
Political reactions
Reacting to the announcement, Indian National Congress, in a post on X, "Trump's friend Narendra Modi has imposed a 50 per cent tariff on India. Trump is continuously taking steps against India, but Narendra Modi doesn't even mention his name. Narendra Modi - show some courage, respond to Trump." Speaking on the tariff announcement, Congress MP Shashi Tharoor said, "Uranium, Palladium, there are various things they (US) are importing from Russia. There is, unfortunately, a certain double standard involved. They have given the Chinese a 90-day break, but the Chinese are importing far more Russian oil than we are. So clearly this has not been a particularly friendly gesture from a country we thought was well disposed towards us, an administration that we thought was well disposed. Very clearly, we have to act accordingly, and we will have to learn our lessons from this experience. I think there is certainly a likelihood that there will be some pressure within India now to impose comparable reciprocal tariffs on American exports to India. So I think we're going to have to really start looking at other trading partners much more in these circumstances..."