In a major trade policy announcement, US President Donald Trump has signed an executive order that imposes a 25% additional tariff on all goods imported from India. This action targets countries that are helping Russia by buying its oil, directly or indirectly.
U.S. President Donald Trump has signed an executive order adding a 25% extra tariff on all Indian imports, raising the total tariff to 50%. The move is aimed at pressuring India to reduce its oil purchases from Russia amid the ongoing Ukraine war. Trump also warned of possible secondary sanctions of up to 100% on any country that continues buying Russian goods if President Putin doesn’t stop the invasion. India, the second-largest buyer of Russian oil after China, imported $52.7 billion worth of crude from Russia last year. In response, India called the tariffs “unjustified and unreasonable,” defended its oil trade as necessary for keeping energy affordable, and accused the U.S. and EU of hypocrisy for continuing business with Russia while criticizing India.
The White House said India continues to purchase Russian oil, which helps finance Russia’s military operations in Ukraine. President Trump views this as a serious threat to US national security and foreign policy.
The new tariffs will come into effect on August 27, 2025—21 days after the executive order. However, any goods that were already in transit before that date and arrive in the US by September 17, 2025 will not be affected.
This measure follows previous executive orders aimed at sanctioning Russian trade, especially related to energy products. The 25% duty will be in addition to existing import taxes, unless specific exceptions apply under US law or earlier trade orders.
Key Points of the Executive Order
- India is penalized for continuing to import Russian oil.
- 25% ad valorem duty applies to Indian goods entering the US after August 27, 2025.
- Goods already shipped before this deadline and arriving before September 17 are exempt.
- The new tariff is in addition to any other applicable duties.
- Other countries may also face similar action if found importing Russian oil.
Officials say this step strengthens existing measures to counter Russia’s aggression in Ukraine and sends a strong message to countries indirectly supporting Moscow through trade.
India Responds Firmly to US Tariffs Over Russian Oil Imports
India has strongly reacted to the US decision to impose additional tariffs, calling the move unfair and unjustified. The government emphasized that India’s oil imports from Russia are driven by market conditions and aimed at securing energy needs for its 1.4 billion citizens. It noted that many other countries are making similar decisions in their own national interest. India reiterated that it will take all necessary steps to safeguard its national interests.
Nomura Warns of Growth Risk from New US Tariffs on India
According to Nomura analysts, the U.S. decision to add a 25% tariff on Indian imports could increase short-term risks to India’s economic growth. These new tariffs, set to begin in 21 days, will double the total U.S. tariff on Indian goods to 50%. Nomura says this sharp increase would feel like a trade ban and could severely disrupt Indian exports. Earlier, Nomura had estimated a possible 0.2% hit to India’s FY 2026 GDP growth, which is currently forecast at 6.2%. However, they now warn the damage could be worse, depending on how long the tariffs remain in place.
Trump Hints at More Tariffs, Possibly Targeting China
U.S. President Donald Trump said he may impose new tariffs on China, similar to the recent 25% tariff hike on Indian goods due to India’s ongoing purchases of Russian oil. He mentioned that more secondary sanctions are being considered to pressure Russia over the war in Ukraine. While no final decision has been made yet, Trump stated, “It could happen,” and added that China might be one of the next targets.
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