Trump Imposes 25% Extra Tariff on Goods From India

New Delhi: US President Donald Trump on Wednesday imposed a total 50 per cent tariff on Indian exports — an initial 25 per cent levy effective from Thursday, followed by an additional 25 per cent after 21 days. Goods in transit until September 17 are exempt. The increase penalises India for purchasing Russian oil. Sectors such as textiles, marine products, and leather exports are expected to suffer, while a small list of essential items that India imports is exempted.

With the new levy, India now faces the highest US tariff rate of 50 per cent, on par with Brazil. Competitors such as Myanmar (40 per cent), Thailand and Cambodia (36 per cent), Bangladesh (35 per cent), Indonesia (32 per cent), China and Sri Lanka (30 per cent), Malaysia (25 per cent), and the Philippines and Vietnam (20 per cent) will enjoy lower duties in the US.

India condemned the move as “unfair, unjustified, and unreasonable” and warned that it would take all measures to protect its national interests. New Delhi pointed out that its oil imports from Russia are based on market factors and aim to ensure energy security for 1.4 billion people.

In his executive order, Trump stated, “I find that the government of India is directly or indirectly importing Russian Federation oil. Accordingly, Indian articles imported into the United States shall be subject to an additional duty of 25 per cent.” He noted the tariffs could be modified if affected countries retaliate or align with US interests.

Trump had earlier raised tariffs on over five dozen countries, including India, under a separate order on August 1. The latest action coincides with the sixth round of proposed bilateral trade agreement negotiations, beginning August 25. Exemptions include pharmaceuticals; energy products (crude oil, refined fuels, natural gas, coal, and electricity); critical minerals; and a wide range of electronics and semiconductors.

The US is also seeking duty concessions from India on industrial goods, automobiles (especially electric vehicles), wines, petrochemicals, agricultural products, dairy items, apples, tree nuts, and genetically modified crops. Exporters estimate the tariffs will severely impact India’s $86 billion in annual US exports.

India accused the US of maintaining “double standards,” citing America’s continued imports of Russian uranium hexafluoride, palladium, fertilisers, and chemicals. In a statement, the ministry of external affairs called the targeting of India “unjustified and unreasonable.”

When asked about India’s charges about the US importing uranium from Russia, Trump said, “I don’t know anything about it… but we’ll get back to you.”

In recent days, Trump criticised India on social media and in media interviews, accusing it of being a poor trading partner with high tariffs and of “fueling the Russian war machine.”

He vowed further tariff increases if India continued buying Russian oil.

The ministry of external affairs countered that India’s purchases stabilise global energy markets and that critical nations themselves trade with Russia. They emphasised that India’s imports are compelled by global market realities and are vital for affordable energy.

India sources about 88 per cent of its crude oil from overseas. Before 2022, Russian oil comprised only 0.2 per cent of India’s imports. Western sanctions later made Russian oil available at a discount, prompting India to import significant volumes. In July, India imported approximately 5 million barrels per day, of which 1.6 million barrels came from Russia.