Trump orders India tariff hike to 50% for buying Russian oil

August 7, 2025

President Donald Trump has issued an executive order imposing an additional 25% tariff on Indian imports to the United States, raising the total to 50%, effective August 27. The White House justifies this action by claiming India's Russian oil purchases undermine U.S. efforts to counter Russia's activities in Ukraine. India's foreign ministry has responded that the tariff is "unfair, unjustified and unreasonable," noting that other countries also import Russian oil in their national interest.

Who is affected

Indian exporters, particularly in textiles, gems and jewelry, auto parts, and seafood industries
The Federation of India Exports Organisations and its members
Indian workers in major job-creating export sectors
American importers and consumers of Indian goods
Russia (indirectly, as the tariffs target its oil customers)

What action is being taken

President Trump is imposing an additional 25% tariff on Indian imports
The White House is evaluating which other countries import Russian oil to recommend further actions
India is pledging to "take all actions necessary to protect its national interests"
Trump's envoy Steve Witkoff is conducting meetings in Moscow aimed at securing peace between Russia and Ukraine

Why it matters

The tariffs will raise the total duty on Indian imports to 50%, among the highest rates imposed by the U.S.
Russia is now India's biggest oil supplier, accounting for more than 35% of India's overall supplies
The tariffs could cut U.S.-bound exports from India by 40-50%, according to the Global Trade Research Initiative
This demonstrates Trump's willingness to impose sanctions related to the Ukraine war even against important U.S. allies or trading partners
The move may signal potential similar actions against other countries that purchase Russian oil

What's next

The new tariff rate will come into effect in 21 days, on August 27
The U.S. will determine which other countries import oil from Russia and "recommend further actions to the President as needed"
Trump has threatened new sanctions on Russia and 100% tariffs on countries that purchase its oil after an upcoming Friday deadline

Read full article from source: BBC