The White House has announced a new executive order imposing an additional 25% tariff on imports from India, in direct response to India’s continued purchase of oil from Russia. This will bring the total tariffs on Indian goods entering the US to 50%, making them among the highest faced by any US trading partner. The new tariffs are scheduled to take effect in 21 days, giving India a brief window to respond before the policy is implemented.

This move follows a similar tariff increase last week, when President Trump imposed a 25% “penalty” tariff for India’s ongoing economic engagement with Russia, particularly in energy and military equipment. Trump publicly criticized India, stating the country has historically relied on Russian arms and energy and accusing it of supporting Russias war economy through such purchases. In social media posts, Trump signaled little concern for the economic fallout, stating, “They can take their dead economies down together, for all I care.” He has also linked these tariffs to a broader campaign against members of the BRICS trading bloc—which includes India, Brazil, Russia, and China—suggesting the group operates counter to US interests.

India’s Ministry of External Affairs promptly denounced the new tariffs, calling them “unfair, unjustified, and unreasonable,” and argued that its oil imports are based on market factors and the critical need to ensure energy security for 1.4 billion people. The ministry emphasized that India is being singled out for policies that other countries also pursue and vowed to “take all actions necessary to protect its national interests”. The executive order leaves about 21 days for negotiations or further diplomatic responses before the tariffs are enacted. Indian exports to the US were valued at $86–129 billion in 2024, with key sectors like textiles, gems, and footwear most exposed to the new tariffs, although sectors such as pharmaceuticals and electronics currently retain some exemptions.

This escalation comes amid broader US efforts to pressure Russia into ending its war in Ukraine. President Trump has imposed tight deadlines for Russia to reach a peace agreement, threatening further economic sanctions if the conflict continues. Recent diplomatic moves, such as US envoy Steve Witkoff visit to Moscow, aim to force a ceasefire, though optimism for an immediate resolution remains low.

India, for its part, insists its oil imports from Russia are determined by economic necessity, not politics, and has signalled it is prepared to retaliate or otherwise defend its interests against perceived US “arm-twisting.” The dispute has significantly strained US-India relations, raising questions about future cooperation and the global ripple effects of this aggressive trade policy.

Disclaimer: This image is taken from The Guardian.