Everything To Know About Trump's 25% Additional Tariff On India
Experts believe that Trump’s action indicates the sharpest decline in US-India relations since he took office again in January.
US President Donald Trump signed an executive order on Wednesday slapping a 25% tariff on Indian goods in response to its purchase of Russian oil. Adding to the existing 25% tariff, this latest hike brings the total import tax on Indian goods to 50%. This places India in one of the highest import tax brackets imposed by the US under Trump. The initial 25% tariff is set to start on August 7, while the additional tax will go into effect 21 days later. This latest move comes after Trump, on Tuesday, warned he would "very substantially" raise tariffs within 24 hours.
India's Ministry of External Affairs responded by stating the government had already clarified its position on Russian imports and repeated that the tariff is "unfair, unjustified and unreasonable". The ministry called the US move unfortunate, saying it was unfair to single out India for something many other countries are also doing to protect their own national interests. At the same time, the White House said that the "Russian Federation's actions in Ukraine pose an ongoing threat to US national security and foreign policy, necessitating stronger measures to address the national emergency".
Statement by Official Spokesperson⬇️
— Randhir Jaiswal (@MEAIndia) August 6, 2025
🔗 https://t.co/BNwLm9YmJc pic.twitter.com/DsvRvhd61D
According to trade data shared with Reuters, India purchased approximately 1.75 million barrels of Russian oil each day in the first six months of this year. This makes India one of Russia's largest customers for its main exports of oil and gas, alongside China. With the new tariff, key Indian exports, including textiles, gems and jewellery, auto parts, and seafood, will now face a heavy 50% tax. This is likely to hit many major job-creating industries. For the time being, electronics, including iPhones, and pharma have been spared from the tariffs.
Experts believe that Trump’s action indicates the sharpest decline in US-India relations since he took office again in January. While bilateral trade between India and the U.S. was approximately $212 billion last year, both countries have an ambitious target of reaching $500 billion by 2030. It’s not easy to say exactly what the U.S. would lose if its ties with India declined. India is an important partner for the US in dealing with China and is also becoming a key base for American tech giants like Apple, which has started moving some of its manufacturing there from China.
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