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The United States has officially imposed an additional 25% tariff on Indian imports, bringing the total duties to 50%, in response to India’s continued purchase of Russian oil.
Some shit you should know before you read: A few weeks back, President Trump issued an ultimatum to Russian President Vladimir Putin, giving him less than two weeks to end the war in Ukraine or face sweeping new US sanctions. For the first time, Trump threatened not only to escalate sanctions on Russia itself but also to impose secondary tariffs on countries that continue doing business with Moscow (particularly those buying discounted Russian oil). The idea behind this strategy is to choke off the economic lifelines that have allowed Russia’s economy to stay afloat despite years of Western sanctions. Russian oil, sold at steep discounts, has become a key source of revenue for the Kremlin, with countries like India, China, Turkey, and Brazil emerging as major buyers. Many believe that without these purchases, Russia would be far more economically vulnerable, and Trump recently warned that nations continuing this trade (specifically India) could face harsh penalties from the US.
What’s going on now: In a notable development, President Trump signed an executive order imposing an additional 25% tariff on imports from India. This new tariff, announced just days after Trump initially threatened further trade penalties, will raise the total tariff rate on Indian goods to 50% (one of the highest tariffs currently imposed on any US trading partner). The order specifically cites India’s continued importation of Russian oil as the rationale for the increase, stating that such purchases indirectly support Russia amid its ongoing war in Ukraine.
The executive order sets a 21-day timeline for the new tariffs to take effect and also directs US officials to evaluate whether other countries are similarly importing Russian oil and to recommend whether additional trade actions should be taken against them.
India, in response, issued a strongly worded statement condemning the new tariffs as “unfair, unjustified, and unreasonable.” The country’s Ministry of External Affairs argued that India’s energy imports are driven by the global market and are essential to ensuring the energy security of its 1.4 billion citizens. Indian officials also pointed out what they say is hypocrisy from the US and EU, noting that Western nations continue to engage in trade with Russia, often without facing similar consequences.
This all comes as India exported an estimated $80 billion worth of goods to the United States in 2024 (UN COMTRADE data). These exports include a wide range of products such as pharmaceuticals and textiles. If the US were to apply a flat 50% tariff across the board, it would amount to roughly $40 billion in additional import duties.
