India to face 50% U.S. tariff as Donald Trump punishes Russian oil trade: ‘Not happy they’re fueling the war machine’
Nancy Jaiswal | Aug 06, 2025, 20:39 IST
Highlight of the story: U.S. President Donald Trump has signed an executive order doubling tariffs on Indian imports to 50%, citing India’s continued purchase of Russian oil. The additional 25% tariff will take effect on August 27, 2025. India calls the move unfair and selective.
US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports. The new measure, which comes into effect on August 27, 2025, takes the total U.S. tariff on Indian goods to 50%.
In his August 6 executive order, Trump cited national security concerns stemming from the ongoing war in Ukraine and India’s oil trade with Russia. The order invokes legal provisions such as the International Emergency Economic Powers Act, the National Emergencies Act, and sections of the Trade Act of 1974.
Trump stated:
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”
The order adds a 25% ad valorem rate of duty on Indian imports entering the U.S. customs territory. Goods already in transit by 12:01 a.m. EDT, 21 days after August 6, and arriving before September 17, 2025, are exempt from the additional duty.
“If they’re going to do that, then I’m not going to be happy.”
He had earlier mentioned a penalty for India, though it wasn’t clear what form it would take. The August 6 executive order now clarifies that penalty in the form of additional tariffs.
India has expressed strong concerns about the move. The Ministry of External Affairs responded on Monday, saying India is being unfairly singled out for importing Russian oil.
Their statement read:
“It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them].”
The ministry suggested that India's import practices are based on national needs, in contrast to other countries with more flexible options.
The executive order lays out the full scope of duties, exemptions, monitoring procedures, and the authority granted to U.S. agencies to enforce the new tariff. Key sections include:
The additional 25% tariff takes effect from August 27, 2025, unless exempted. With the cumulative tariff now at 50%, India becomes one of the most heavily taxed U.S. trading partners under Trump’s trade strategy.
While the U.S. administration focuses on curbing Russia’s global oil trade, this move may test its economic relationship with India further, especially given the broader context of global energy dependencies and foreign policy tensions.
India’s response suggests that it sees this action as politically motivated and discriminatory, potentially setting the stage for further diplomatic pushback in the weeks ahead.
Trump justifies action through executive powers
In his August 6 executive order, Trump cited national security concerns stemming from the ongoing war in Ukraine and India’s oil trade with Russia. The order invokes legal provisions such as the International Emergency Economic Powers Act, the National Emergencies Act, and sections of the Trade Act of 1974.
Trump stated:
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”
The order adds a 25% ad valorem rate of duty on Indian imports entering the U.S. customs territory. Goods already in transit by 12:01 a.m. EDT, 21 days after August 6, and arriving before September 17, 2025, are exempt from the additional duty.
Trump’s warning was public and repeated
“If they’re going to do that, then I’m not going to be happy.”
He had earlier mentioned a penalty for India, though it wasn’t clear what form it would take. The August 6 executive order now clarifies that penalty in the form of additional tariffs.
India responds: ‘We’re being targeted’
India has expressed strong concerns about the move. The Ministry of External Affairs responded on Monday, saying India is being unfairly singled out for importing Russian oil.
Their statement read:
“It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them].”
The ministry suggested that India's import practices are based on national needs, in contrast to other countries with more flexible options.
What the order says: Full scope and implementation
The executive order lays out the full scope of duties, exemptions, monitoring procedures, and the authority granted to U.S. agencies to enforce the new tariff. Key sections include:
What’s next?
The additional 25% tariff takes effect from August 27, 2025, unless exempted. With the cumulative tariff now at 50%, India becomes one of the most heavily taxed U.S. trading partners under Trump’s trade strategy.
While the U.S. administration focuses on curbing Russia’s global oil trade, this move may test its economic relationship with India further, especially given the broader context of global energy dependencies and foreign policy tensions.
India’s response suggests that it sees this action as politically motivated and discriminatory, potentially setting the stage for further diplomatic pushback in the weeks ahead.