Trump implements fresh tariffs on India's imports - U.S. President Donald Trump enacts fresh tariffs on India
In a move aimed at putting pressure on Russia, President Donald Trump has announced an Executive Order imposing an additional 25% tariff on imports from India, effective August 27, 2025. This decision comes as a result of India's continued direct or indirect purchases of Russian oil, a primary source of revenue for Russia.
The tariff, which is the first of its kind from Trump towards Russia, is part of a broader strategy to address the national emergency created by Russian actions against Ukraine. The new tariffs will double the total rate for Indian imports to 50 percent.
The tariff applies to imports from India generally, with an exception for articles listed in Annex II to Executive Order 14257, a previous order addressing reciprocal tariffs. The Secretary of Commerce, coordinating with State, Treasury, and other officials, has been directed to determine whether other countries are also importing Russian oil and to recommend further actions as needed.
Analysts have expressed concerns that the move could severely damage U.S.-India relations, which have been strengthening for decades. They view the tariff as coercive and likely to be seen in New Delhi as interference in Indian foreign and energy policy.
The tariff could disrupt trade ties, complicate supply chains, and prompt reciprocal or compensatory measures. Some coverage suggests that the administration has previously threatened additional tariffs tied to India’s participation in forums like BRICS and to manufacturing/foreign investment choices.
As the situation evolves, it remains to be seen if other importers of Russian oil will be identified for potential similar measures. Full implementing guidance, lists of excluded items, and enforcement procedures will be crucial for exporters, importers, and policymakers.
India has been purchasing oil and other energy carriers from Russia at significant discounts below the world market price. In June, India was the second-largest buyer of Russian fossil fuels, with purchases worth 4.5 billion euros. Oil accounted for 80 percent of India's purchases from Russia, amounting to 3.6 billion euros.
Negotiations between U.S. special envoy Steve Witkoff and Russia did not yield any results, and Trump has been threatening tariffs on Russia's allies for some time. The new tariffs are a significant escalation in Trump's strategy to weaken the economic foundation of the Kremlin by putting more pressure on major customers in the energy sector, such as China and India.
[1] Executive Order on Adjusting Imports of Oil from the Russian Federation to Reduce United States Dependence on Russian Energy, White House, 2025. [2] "Trump's India Tariffs: What You Need to Know," The Washington Post, 2025. [3] "Trump Imposes Tariffs on India over Russian Oil Deals," The New York Times, 2025.
- The Council of Economic Advisers, in discussions regarding the business implications, might express concerns about the potential negative effects of the new tariffs on U.S.-India relations, as these could impact various sectors, including finance and politics.
- In the general-news segment, discussions might focus on the potential consequences of the tariffs on imports from India, as policymakers, importers, and exporters anxiously await the full implementing guidance, lists of excluded items, and enforcement procedures outlined in the Executive Order on Adjusting Imports of Oil from the Russian Federation to Reduce United States Dependence on Russian Energy.
