The United States has imposed an additional 25% tariff on India for “directly or indirectly importing Russian oil.” This decision comes as part of a presidential executive order signed by US President Donald Trump, aimed at addressing the ongoing situation in Ukraine. According to the order, the actions and policies of the Government of the Russian Federation continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.
The executive order states that the national emergency described in Executive Order 14066 continues, necessitating the imposition of an additional ad valorem duty on imports of articles from India that are directly or indirectly importing Russian Federation oil. “To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,” the order reads.
The new tariff will be effective for goods entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 am Eastern Daylight Time (EDT), 21 days after the date of the order. This move is expected to impact various Indian sectors, including steel, automotive parts, aluminum, textiles, and pharmaceuticals, which are among India’s biggest exports to the US.
The Indian government has expressed its disagreement with the decision, stating that the targeting of New Delhi is “unjustified” and “unreasonable.” The Ministry of External Affairs highlighted that nations criticizing India are themselves indulging in trade with Russia, pointing out the hypocrisy. “The US imports uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilizers, and chemicals,” the statement read. “In this background, the targeting of India is unjustified and unreasonable.”
The US has been vocal about its concerns regarding India’s purchase of Russian oil, with President Trump criticizing India’s import of Russian oil and hinting at raising tariffs on Indian goods. “India has not been a good trading partner,” Trump remarked. “They do a lot of business with us, but we don’t do business with them.”
The tariff imposition is part of a broader trade tension between the US and India, with the US also imposing a 25% tariff on Indian imports starting August 1, 2025. The total US levies against India now stand at 50%. The Indian government has taken note of Trump’s tariff decision and is studying its implications.