In a move that could significantly escalate trade tensions between the United States and India, President Donald Trump has imposed an additional 25% tariff on Indian goods, citing India's continued imports of Russian oil. This brings the total tariff on Indian goods to a steep 50%, placing India in one of the highest tax brackets under Trump’s administration. The executive order, announced on Wednesday, frames Russia’s military actions in Ukraine as a “national emergency,” and targets India for its economic ties with Moscow, calling them a threat to U.S. national security.
The
new tariffs are set to take effect in 21 days, providing a brief window for
further negotiations. India, a major consumer of Russian petroleum products, is
now under pressure to reevaluate its energy trade policy or face heightened
economic strain. Trump’s order claims that India is "directly or
indirectly" supporting the Russian economy through oil imports, prompting
the need for "necessary and appropriate" action to protect U.S.
interests. Brazil is currently the only other country facing similar tariff
rates.
The tariff announcement follows months of unsuccessful trade talks between the two nations. Despite five rounds of negotiations and a visit by U.S. Vice President JD Vance to New Delhi in April, no agreement was reached. Analysts warn that the move marks a serious downturn in US-India relations, potentially the most strained in recent years. Meanwhile, India’s rival Pakistan has reportedly secured a reduced tariff rate in earlier talks, highlighting New Delhi's diplomatic challenges with Washington under the current U.S. administration.