In a sharp turn against a longtime partner, U.S. President Donald Trump has imposed an additional 25% tariff on all Indian imports, citing India’s continued procurement and resale of discounted Russian crude oil.
This move raises India’s total tariffs to 50%, doubling the existing rate and marking the harshest trade escalation in decades between the two countries. The new duties will take effect in roughly three weeks, with the initial 25% boost beginning sooner.
Trump’s strategy is entwined with his broader campaign to pressure Russia: he has threatened secondary tariffs—possibly as high as 100% or even 500%—on all countries trading in Russian energy unless Moscow agrees to a ceasefire August 8.
India swiftly condemned the decision as “unjustified” and “extremely unfortunate,” insisting it will defend its economic interests any means necessary. Indian officials highlighted what they see as U.S. hypocrisy, noting that the U.S. continues to import other Russian commodities even while penalizing India for its energy purchases.
Analysts warn that these punitive tariffs could backfire: U.S. consumers and businesses may feel the pinch through higher import costs and intensified inflation. India, a major exporter of goods like textiles, auto parts, pharmaceuticals, and electronics, now risks losing competitiveness against other markets such as Vietnam, Bangladesh, or Pakistan.
At the same time, growing tensions over energy and trade policy have cast a shadow over Trump’s previously warm relationship with Indian Prime Minister Narendra Modi, complicating the future of major initiatives like the bilateral $500 billion “Mission 500” trade deal Wikipedia.
India now faces a balancing act: preserving its crucial but controversial ties with Russia while mitigating fallout from its largest export destination, the U.S.