U.S. President Donald Trump has announced a significant escalation in trade tensions with India, doubling tariffs on Indian goods to 50% in response to India’s continued purchase of Russian oil. The White House issued a statement on Wednesday, shortly after failed U.S.-Russia talks over the Ukraine war, stating that the move is aimed at undermining the Russian economy and punishing countries that continue to engage in oil trade with Moscow.
The new tariff, an additional 25% on top of an already scheduled 25% country-specific levy, will come into effect within 21 days, according to an executive order signed by the U.S. President. The order excludes certain items already covered under sector-specific tariffs, including steel, aluminum, and pharmaceuticals.
A White House fact sheet justified the decision by stating that India’s continued import of Russian crude and its resale on global markets—often at a profit—strengthens Russia’s ability to fund its military activities. “President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences on Russia for its ongoing aggressions,” it said.
Trump also criticized India’s existing trade policies during an interview with CNBC, stating, “India has not been a good trading partner. They do a lot of business with us, but we don’t do much business with them. We settled on 25%, but I think I’m going to raise that rate quite substantially in the next 24 hours.” He reiterated his claim that India imposes the highest tariffs in the world, adding, “They’re buying Russian oil and fueling the war machine. If they are going to do that, I’m not going to be happy.”
The Indian government swiftly condemned the U.S. action. In a strong statement, the Ministry of External Affairs (MEA) described the tariff hike as “unfair, unjustified, and unreasonable,” and stated that India would take “all necessary steps” to protect its national interests. “Our imports are based on market factors and are done with the overall objective of ensuring energy security for 1.4 billion Indians,” the MEA said.
The statement further noted that India is not alone in purchasing Russian oil, and that many other countries continue to act in their own national interest. “It is extremely unfortunate that the U.S. should single out India,” it added.
This dramatic escalation marks a sudden and sharp rift between New Delhi and Washington, which had been strengthening strategic and economic ties in recent years. Tensions began rising on July 31, when Trump first announced a 25% tariff and hinted at further penalties related to India’s energy trade with Russia.
India remains one of the largest importers of Russian oil, purchasing around 1.75 million barrels per day from January to June 2025 — a 1% increase over the same period last year. Indian refiner Nayara Energy, which is majority-owned by Russian entities including oil giant Rosneft, was already hit by European Union sanctions in July.
Trade experts warn that the tariff hike could severely impact Indian exports. Ajay Srivastava, co-founder of the Global Trade Research Initiative in New Delhi, estimated that India’s exports to the U.S. could fall by as much as 30% this fiscal year, dropping from $86.5 billion to $60.6 billion.
With Prime Minister Narendra Modi reportedly planning a visit to China later this month — his first in over seven years — the geopolitical dynamics surrounding India’s foreign policy are set to become even more complex in the wake of Washington’s aggressive trade stance.
