Trump Slaps India With Steep Tariff for Buying Russian Oil
United States: The White House unveiled a sharp escalation in trade pressure on India on Wednesday, announcing a new 25% tariff that raises the total duties on Indian goods to a staggering 50%—one of the highest rates currently levied against any US trading partner.
In an executive order, President Donald Trump cited India’s continued import of oil from Russia as the driving force behind the move.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” Trump wrote in the order. “Accordingly… articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent.”
The new tariffs will take effect in 21 days, while an earlier round of 25% tariffs is set to kick in this Thursday, according to CNBC News.
Trump’s Message: Cut Ties With Russian Oil or Face Costs
The decision marks a significant escalation in Trump’s efforts to punish countries that continue buying Russian energy following President Vladimir Putin’s invasion of Ukraine. Over the past weeks, Trump has doubled down on threats, warning that India—and others—would face economic consequences if they fueled what he calls “Russia’s war machine.”
In an interview on Tuesday on CNBC’s Squawk Box, Trump said:
“I’m going to raise the tariff on India very substantially over the next 24 hours because they’re buying Russian oil… and if they’re going to do that, then I’m not going to be happy.”
India Pushes Back: “Unjustified and Unreasonable”
India quickly condemned the new tariffs, saying the US was unfairly targeting New Delhi for actions that many other nations are also taking.
“It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” said a statement from India’s Ministry of External Affairs.
The ministry defended India’s oil purchases from Russia, stating they are “based on market factors” and necessary to meet the energy needs of 1.4 billion people.
“We reiterate that these actions are unfair, unjustified, and unreasonable,” the statement added.
India also called out what it sees as hypocrisy, noting that some Western nations criticizing India are still doing business with Russia themselves—without the same consequences.
“Unlike our case, such trade is not even a vital national compulsion [for them],” the ministry said.
More Tariffs on the Horizon?
Trump’s order doesn’t stop with India.
It also instructs his administration to investigate other countries that may be buying Russian oil, and to consider trade penalties against them too, as reported by CNBC News.
“Determine whether and to what extent I should take action as to that country,” the order reads.
Last week, Trump had hinted at additional penalties on India—not just over oil, but also for purchasing military equipment from Moscow. However, it wasn’t clear at the time how those penalties would be applied. Now, with the 50% tariff in place, the pressure is very real.
What This Means Going Forward
This dramatic tariff hike could severely strain US-India relations, which had been cautiously improving over recent years. It also risks triggering retaliatory trade actions, hurting both economies.
At the same time, it sends a loud message: countries continuing economic ties with Russia could now find themselves in Washington’s crosshairs.
For now, the clock is ticking—India has 21 days before the full 50% tariff hits. What comes next may depend on how the world—and India—responds.
