US Raises Tariffs on India Over Russian Oil Imports, Increasing Pressure

US President Donald Trump has ordered an additional 25% tariff on India due to its continued import of oil from Russia. As a result, the total tariff on Indian goods imported into the United States will rise to 50%, one of the highest rates in the country's history. The new tariff rate will take effect from August 27.

In a brief statement on Wednesday, India's Ministry of External Affairs said it had already made its position clear to the US regarding imports from Russia. The statement described the tariff as “unfair, unreasonable, and unacceptable,” adding, “It is deeply regrettable that India is being singled out with additional tariffs for taking measures to protect its national interest, which other countries are also implementing. India will take all necessary steps to safeguard its national interests.”

The White House stated that Russia’s aggression against Ukraine poses an ongoing threat to the national security and foreign policy of the United States. They also accused India’s Russian oil imports of weakening the US efforts against Russia.

Currently, about 35% of India’s total oil imports come from Russia. According to market research firm Kpler, India purchased approximately 1.75 million barrels per day of Russian oil in the first six months of this year.

The new tariff will severely impact India’s key export sectors such as textiles, gemstones and jewelry, auto parts, and seafood. However, electronic products (like iPhones) and the pharmaceutical industry will remain tariff-exempt for now. Indian export bodies have called this decision “extremely surprising,” warning that 55% of India’s total exports to the US could be affected.

This move by the Trump administration has escalated trade tensions between the two countries, despite previous instances where Trump and Indian Prime Minister Narendra Modi referred to each other as friends and jointly participated in public rallies. Experts believe this US decision also serves as a warning to other countries continuing to import oil from Russia.