Trump imposes 50 pc tariff on Indian goods over Russian oil imports
While the initial 25 pc duty becomes effective on August 7, the additional levy will come into effect on August 27; India defends its stance
US President Donald Trump on Wednesday (August 6) announced an additional 25 per cent tariff on Indian goods, raising India's total share to 50 per cent. He described the move as a "punishment" for India's continued oil purchases from Russia.
A White House release quoted Trump said that India was currently importing crude oil from Russia, as a result of which an additional 25 per cent tariff would be imposed on Indian goods entering the US. India responded to the action, calling it unfair and unjustified.
“I find that the government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, 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,” Trump said.
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“Subject to section 3 of this order, this rate of duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order,” he added.
The release further stated that goods that were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of the latest order and those which entered the US for consumption, or withdrawn from warehouse for consumption, before 12:01 a.m. eastern daylight time on September 17, 2025 would be exempted from the additional tariffs.
Unfair, says India
Responding to the fresh tariff announcement, India said it has already made its stance clear — its imports are based on market factors alone. Randhir Jaiswal, official spokesperson of the Ministry of External Affairs, said: "The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
"It is therefore 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. We reiterate that these actions are unfair, unjustified and unreasonable," he added. "India will take all actions necessary to protect its national interests."
Action on other nations
"The Secretary of Commerce, in coordination with the Secretary of State, Secretary of the Treasury, and other senior officials, will determine whether other countries directly or indirectly import Russian Federation oil and recommend further actions to the President as needed," said the White House statement.
India’s import of Russian oil is undermining US efforts to counter Russia’s harmful activities, claimed Trump. India’s subsequent reselling of this oil on the open market, "often at significant profit', further enables the Russian economy to fund its aggression against Ukraine, the White House statement added.
"By imposing a 25% tariff, President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences on the Russian Federation for its ongoing aggressions," it said.