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U.S. President Donald Trump has announced an additional 25 percent tariff on Indian imports, raising the total duty to 50 percent. The move was described as a “penalty” for India’s continued import of Russian crude oil. Trump also warned that similar measures would be imposed on other countries buying oil from Russia, either directly or indirectly, accusing them of financially supporting Vladimir Putin’s war on Ukraine. This latest tariff hike pushes duties on Indian goods 20 percent higher than those on Chinese imports and 31 percent more than those on Pakistani goods. The new tariff is set to take effect in 21 days.
India’s reaction was swift and unequivocal. A government spokesperson condemned the U.S. action as “unfair, unjustified, and unreasonable,” emphasizing that India’s oil imports are based on market considerations and necessary to meet the energy needs of its 1.4 billion citizens. The spokesperson also pointed out the irony of the U.S. singling out India, while many other nations, including the U.S. itself, continue to trade with Russia. “It is extremely unfortunate the U.S. should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the statement read.
In the executive order authorizing the tariffs, Trump declared that India was directly or indirectly importing Russian oil, and therefore it was necessary to impose an “ad valorem” duty on Indian goods. The announcement came just hours after Trump made combative comments about India on U.S. television, stating, “India has not been a good trading partner… we settled on 25 percent… but I think I’m going to raise that substantially over the next 24 hours because they’re buying Russian oil.” Such remarks have raised concerns about deteriorating U.S.-India relations and the potential for broader geopolitical shifts, with some analysts speculating that this could push India closer to Russia, Brazil, and possibly China within the BRICS framework.
Fueling this narrative is Trump’s recent move to reduce tariffs on Pakistan to 19 percent and sign a new trade agreement with Islamabad, including plans to develop Pakistani oil reserves. Just last week, Trump had warned that India would face a 25 percent tariff plus an unspecified penalty for its continued defense and energy partnerships with Russia. This warning came just two days before the deadline for imposing “reciprocal tariffs” on various U.S. trading partners—a measure first announced in April and temporarily suspended for negotiations.
In past remarks, Trump criticized India’s trade policies, calling them “strenuous and obnoxious” due to high tariffs and non-monetary trade barriers. “India is our friend, but we have, over the years, done relatively little business with them because their tariffs are far too high,” he claimed.
India pushed back firmly against the accusations, arguing that its purchases of Russian oil were driven by market necessity and that critics, including the U.S., were themselves engaged in trade with Russia for non-essential goods. As an example, India pointed to the European Union’s import of €67.5 billion worth of Russian liquified natural gas in 2024, and highlighted that the U.S. continues to import Russian uranium hexafluoride, palladium, fertilizers, and chemicals. India also reminded Washington that it had encouraged Indian oil imports from Russia during the early stages of the Ukraine conflict.
Tensions between the U.S. and India have been escalating in recent months, particularly after trade negotiations launched under former President Joe Biden in December 2024 failed to reach a conclusion. A potential agreement, which would have reduced tariffs on Indian goods, stalled when India refused to open its price-sensitive agricultural markets to American farmers. In response, Trump accused India of being a “very big tariff abuser.”
Despite the escalation, Indian government sources told NDTV that the 25 percent tariff increase would have a negligible impact on the Indian economy, with GDP losses expected to remain under 0.2 percent. An Indian economist told Bloomberg t
