Update: India will face an extra 25% tariff on their imports to the US, bringing the total rate to 50%, the US president Donald Trump announced on Wednesday. The president initially imposed a 25% tariff, but announced an additional 25% – effective on August 27 – as a penalty for New Delhi’s purchase of Russian oil. Those combined penalties would bring the total tariff on imports from India to a whopping 50%, among the highest the US charges.
The latest executive order finds India is “directly or indirectly importing Russian Federation oil,” and says it is necessary to apply the additional 25% tariff on Indian goods.
“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,” according to a document posted on the White House website.
In a blistering rebuttal to renewed US criticism, India on Monday accused Washington and the European Union of “unjustified and unreasonable targeting” over Russian oil imports after the commencement of the Ukraine conflict, reminding them that it was the United States itself that once encouraged such imports by India for strengthening global energy markets stability.
In the sharpest statement since US president Donald Trump announced a 25% tariff on its imports to the United States, New Delhi hit back on Monday, saying the country would take “all necessary measures” to safeguard its “national interests and economic security”.
Trump threatened on Monday that he would raise the tariff on India “substantially”. With a social media post on Truth Social, Trump accused India of not only buying massive amounts of Russian oil but also selling much of the oil purchased on the open market for big profits. “They don’t care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA,” Trump wrote.
The ministry of external affairs issued a strong response after US president Donald Trump threatened to raise tariffs against India.
“India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict,” said external affairs ministry spokesperson Randhir Jaiswal.
“The United States at that time actively encouraged such imports by India for strengthening global energy markets stability,” he said.
The ministry statement also highlighted ongoing trade between Russia and the US, noting that Washington continues to “import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals.”
Meanwhile, Europe-Russia trade included energy as well as fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment.
India also offered numbers to underscore the double standards. “The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023. This is significantly more than India’s total trade with Russia that year or subsequently. European imports of LNG in 2024, in fact, reached a record 16.5mn tonnes, surpassing the last record of 15.21mn tonnes in 2022,” the MEA statement added.
The MEA emphasised that New Delhi’s energy imports are a decision driven by national interest and market realities.
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation. However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” read the MEA release.
