President Donald Trump announced that he is increasing India’s tariffs by 25%, due to continued imports of Russian oil.
These new tariffs are set to take effect in 21 days and would see duties on some Indian exports rise to 50%, which is among the highest levied on any U.S. trading partner.
“I find that the Government of India is currently directly or indirectly importing Russian Federation oil,” Trump said in an executive order.
“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,” the executive order reads.
The new tariff did not mention China, which also imports Russian Oil.
Analysts believe this could mark the most serious downturn in U.S.-India relations since Trump took office in January, as it would threaten to disrupt India’s access to their biggest export market, which totalled nearly US$87 billion in 2024.
It’s also a shift from Trump’s warm ties with the Indian Prime Minister Narendra Modi, following their meeting in February.
India’s external affairs ministry called the decision “extremely unfortunate” pointing out that many other countries import Russian oil.
"India will take all necessary steps to protect its national interests," it said, adding that purchases were driven by market factors and the energy needs of India's 1.4 billion people.
This is Trump’s latest course of action in a bid to punish countries that buy Russian oil, and comes after Trump’s special envoy, Steve Witkoff, met with Russian President Vladimir Putin to discuss a peace deal with Ukraine.
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