United States President Donald Trump has intensified his trade war tactics by imposing a hefty 25% additional tariff on Indian imports, bringing the total to 50% — one of the highest ever levied against a U.S. trade partner. The move is a direct response to India’s continued import of Russian oil, which the White House claims indirectly supports Russia’s war in Ukraine.
The executive order, issued on Aug. 6, comes just hours after Trump teased further secondary sanctions during a press briefing. He warned that more countries could soon face similar consequences for economic dealings with Russia, signalling a broader escalation of Washington’s global sanctions regime.
India, now lumped with Brazil in bearing the brunt of a 50% tariff, has hit back forcefully, calling the new measures “unfair, unjustified and unreasonable.”
India Vows to Defend National Interests
India’s Ministry of External Affairs expressed strong disapproval, citing the need to protect its national energy security and the interests of its 1.4 billion citizens. The ministry reiterated that oil imports are guided by market dynamics and should not be politicised.
Prime Minister Narendra Modi also responded publicly, stating that Indian farmers remain a top priority, and that the government “will not compromise,” even if it means facing economic fallout. He described the decision as a strategic misjudgement by the U.S.
India currently imports around 88% of its crude oil, with Russian supplies making up a significant portion after global sanctions lowered Russian oil prices. Prior to 2021, Russia was a minor supplier, but now accounts for over 30% of India’s oil imports.
Trump Accuses India of Profiteering Off War
In a scathing post on Truth Social, Trump accused India of buying cheap Russian oil only to resell it for profit on global markets. He claimed India is enabling the Kremlin while ignoring the human toll in Ukraine. “They don’t care how many people are being killed,” he wrote, slamming India’s actions as morally indefensible.
Trump’s executive order, titled Addressing Threats to the United States by the Government of the Russian Federation, formally declares that any Indian imports into U.S. territory will be subjected to the enhanced 50% tariff. The new base rate is effective from Aug. 7, with the additional 25% kicking in from Aug. 27.
China Deal Looming Amid India Crackdown
Interestingly, Trump’s aggressive stance against India comes just as he announced the U.S. is close to finalising a new trade deal with China. He hinted at a possible meeting with Chinese President Xi Jinping before year-end, contingent on progress in ongoing negotiations.
Analysts say the contrasting treatment of India and China may point to a calculated geopolitical pivot. As the U.S. seeks to secure favourable trade deals in Asia, India may be paying the price for straddling the fence on global sanctions.
Whether India will retaliate with its own trade restrictions or align further with BRICS allies remains to be seen — but one thing is certain: global trade tensions are heating up fast.