Trump raises U.S. tariffs on Indian imports to 50%

U.S. President Donald Trump on Wednesday (August 6, 2025) signed an government order imposing an extra 25% tariff on imports from India, in response to India “instantly or not directly” importing oil from Russia. This is over and above the 25% tariff on Indian imports that Mr. Trump accepted on July 31.

While the preliminary 25% tariff will come into impact from Thursday (August 7, 2025), the extra 25% tariff will come into impact after 21 days.

The Ministry of External Affairs (MEA) responded to those newest developments, saying it has made its stand clear — by an earlier assertion following Mr. Trump’s risk of extra tariffs — that these actions have been “unfair, unjustified and unreasonable”. It was “extraordinarily unlucky” that the U.S. has chosen this plan of action, the MEA stated.

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‘Penalty’ for Russian oil imports

“To take care of the nationwide emergency described in Executive Order 14066 [relating to Russia’s actions in Ukraine], I decide that it’s vital and applicable to impose an extra advert valorem obligation on imports of articles of India, which is instantly or not directly importing Russian Federation oil,” Mr. Trump’s government order stated. 

“Accordingly, and as in keeping with relevant regulation, articles of India imported into the customs territory of the United States shall be topic to an extra advert valorem charge of obligation of 25%,” it added.

Over the previous couple of days, Mr. Trump has repeatedly threatened extra tariffs on India as a “penalty” for its oil imports from Russia.

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‘Unfair, unjustified, unreasonable’

In response to 1 such risk, the MEA on August 4 identified that, not solely did the U.S. encourage such commerce beforehand, each the European Union and the U.S. actively commerce different gadgets with Russia in extra of the quantity that India pays for Russian oil.

“We have already made clear our place on these points, together with the truth that our imports are based mostly on market elements and executed with the general goal of making certain the vitality safety of 1.4 billion individuals of India,” the MEA assertion stated. “It is due to this fact extraordinarily unlucky that the U.S. ought to select to impose extra tariffs on India for actions that a number of different international locations are additionally taking in their very own nationwide curiosity.”

“We reiterate that these actions are unfair, unjustified and unreasonable,” the MEA added. “India will take all actions vital to guard its nationwide pursuits.”

‘Competitive drawback’

This newest escalation by Mr. Trump is a “extreme setback” for Indian exports, stated S.C. Ralhan, president of the Federation of Indian Export Organisations, noting that almost 55% of Indian exports to the U.S. market shall be instantly affected. 

“The 50% reciprocal tariff successfully imposes a value burden, inserting our exporters at a 30% to 35% aggressive drawback in comparison with friends from international locations with a decrease reciprocal tariff,” Mr. Ralhan added.

Negotiators from the U.S. and India are at present engaged in finalising the primary tranche of a Bilateral Trade Agreement (BTA) by fall of this yr. The subsequent bodily assembly between the 2 sides is predicted to begin on August 25 in New Delhi. 

‘Talks hampered by threats’

“India ought to stay calm, keep away from retaliation for not less than six months, and recognise that significant commerce negotiations with the U.S. can’t proceed below threats or distrust,” stated Ajay Srivastava, founding father of the Global Trade Research Initiative and a former Director General of Foreign Trade.

He added that India might think about stopping its purchases of Russian oil provided that it was economically viable, and never below duress from Washington.