Trump Doubles Tariffs on Indian Imports to 50%, Citing Russian Oil Trade

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Washington D.C., August 6, 2025 — In a dramatic escalation of trade tensions, U.S. President Donald Trump has imposed an additional 25% tariff on Indian imports, bringing the total tariff burden to 50%. The move comes in response to India’s continued purchase of discounted Russian oil and defense equipment, which the Trump administration claims undermines global sanctions against Moscow.

📜 Executive Order and Implementation Timeline

  • The new tariff was announced via an executive order titled “Further Modifying the Reciprocal Tariff Rates”, signed on August 6, 2025.
  • The initial 25% tariff, announced earlier, takes effect on August 7.
  • The additional 25% duty will be implemented 21 days later, on August 272.

⚠️ Sectors Likely to Be Hit

The increased tariffs are expected to impact key Indian export sectors, including:

  • Pharmaceuticals
  • Textiles and garments
  • Auto components
  • Machinery
  • IT services and electronics

India exports nearly $87 billion worth of goods annually to the U.S., making this tariff hike a significant blow to trade.

🛢️ The Russia Factor

Trump accused India of indirectly funding the war in Ukraine by continuing to buy Russian crude oil.

“They’re buying oil from Russia—that’s not okay,” Trump said, warning of “very substantial” tariff hikes.

India, however, has defended its energy strategy, citing economic and strategic interests, and pointing to Western nations’ own ongoing trade with Russia.

🔍 Exemptions and Monitoring

While most Indian goods will face the full 50% tariff, a limited exemption list remains. Goods already shipped before the new order may be exempt if they arrive in the U.S. before September 17.

The U.S. Commerce Department has been tasked with monitoring other countries importing Russian oil, suggesting that similar penalties could be extended globally.

🇮🇳 India’s Response

Indian officials have yet to issue a formal response, but trade experts warn that the move could trigger retaliatory tariffs and further strain diplomatic ties. Negotiations are expected to intensify in the coming weeks as India seeks to protect its export-driven industries.

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