
Trump Doubles Tariffs on Indian Imports to 50% Over Russian Oil Trade
In a major escalation of trade tensions between the United States and India, US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports, bringing the total tariff rate to a staggering 50%.
The move, announced on Wednesday, comes in response to India’s continued import of discounted Russian oil — a practice Trump called “undermining” the US-led global efforts to isolate Russia following its invasion of Ukraine.
Trump Accuses India of Undermining Sanctions
Speaking to the press, Trump accused India of “not being a fair trading partner” and alleged that New Delhi had not only increased purchases of Russian oil despite international sanctions, but in some cases, was even “reselling it for profit.”
“India is taking advantage of us. They’re buying Russian oil, reselling it, and laughing all the way to the bank,” said Trump. “This is not how partners behave.”
He also dismissed India’s recent trade concessions — including its offer to remove tariffs on select US goods — saying those gestures were “too little, too late” given the current energy dynamics.
Tariff Hike to Impact Major Indian Exports
The additional 25% tariff will hit nearly $64 billion worth of Indian exports to the US, affecting industries such as pharmaceuticals, textiles, gems, jewelry, petrochemicals, and more.
Analysts warn this could significantly dent India’s competitiveness in the US market and lead to major revenue losses for export-driven industries.
However, economists estimate that the overall impact on India’s GDP may remain limited, potentially reducing growth by around 40 basis points. According to a Reserve Bank of India study, goods exports to the US account for roughly 2% of India’s GDP.
India Rejects Tariff Move as Politically Motivated
The Indian government responded swiftly, condemning the new tariffs as “unreasonable and unjustified.” Officials reiterated that India’s energy strategy is guided by national interest, not external pressure.
“India was among the countries encouraged by the West to buy Russian oil to stabilize global prices during the early days of the Ukraine conflict,” said a senior Indian official. “To now penalize us for that is both hypocritical and counterproductive.”
Indian authorities also pointed out that several US and EU nations continue to engage in indirect trade with Russia, undermining the moral grounds for the US’s tariff hike.
Global Repercussions and Risks of Escalation
Trade analysts have raised concerns that this aggressive move by the Trump administration may have ripple effects on the global economy. US manufacturers and retailers dependent on Indian imports could face increased costs, potentially leading to higher prices for American consumers.
Trump has hinted at further punitive actions — including the possibility of 100% tariffs or sanctions on other nations buying Russian oil, such as China.
Diplomatic Strain Deepens
The tariff hike marks a sharp downturn in US-India relations, which have otherwise seen strategic cooperation in recent years. Both governments now appear headed for a protracted economic standoff.
India has reiterated its commitment to protecting its sovereign trade and energy policies and is expected to explore retaliatory trade measures in the days ahead.
As geopolitical and economic tensions rise, the world watches closely to see whether diplomacy can resolve what is rapidly becoming one of the most serious trade disputes between two of the world’s largest democracies.