Editor’s Note
The U.S. has activated additional tariffs on select Indian goods, bringing the total duty to 50%. This measure is linked to India’s purchases of Russian oil.
The 50% tariffs imposed by the United States on Indian exports due to purchases of Russian oil have taken effect. Starting from midnight on Wednesday, the US activated additional 25% tariffs on products from India, adding to a previous 25% tranche applied on August 7, bringing the total tax burden on these goods to 50%.
This decision by the Donald Trump administration aims to sanction New Delhi for maintaining its purchases of Russian oil, an activity Washington considers a threat to its national security objectives. The new tariff level places India among the countries facing the highest trade barriers from Washington since Trump’s return to the White House in January.
New Delhi reacted harshly, calling the decision “unfair, unjustified, and unreasonable.”
Prime Minister Narendra Modi promised measures to cushion the impact, including reductions in internal taxes, and reiterated his commitment to economic self-sufficiency.
Although exemptions remain in sensitive sectors such as pharmaceuticals, semiconductors, and smartphones, exporters of textiles, seafood, and jewelry reported cancellations of orders from the United States and losses to competitors like Bangladesh and Vietnam. In 2024, the United States was the top destination for Indian exports, with sales reaching $87.3 billion. The new policy threatens to drastically reduce that figure.
India defended its energy policy. In 2024, 36% of the country’s crude oil imports came from Russia, saving billions of dollars and keeping domestic fuel prices stable. The Ministry of External Affairs recalled that Washington had initially encouraged the purchase of Russian crude when Europe diverted its purchases to other suppliers after the invasion of Ukraine.
Despite these arguments, the Trump administration proceeded with the measure. Its trade advisor Peter Navarro accused India of “not recognizing its role in the bloodshed” and stated that New Delhi “is moving closer to Xi Jinping,” alluding to the leader of the Chinese regime.
Experts warn of an abrupt deterioration in bilateral relations.
noted Wendy Cutler, Vice President of the Asia Society Policy Institute and a former US trade official.
she added.
The tariffs are applied broadly, although sectors such as steel, aluminum, and the automotive industry are excluded for now. However, ongoing investigations could lead to additional levies against Indian products in those areas.
With this decision, Washington intensifies pressure on New Delhi and opens a scenario of growing tensions in the bilateral relationship, while India evaluates strengthening its cooperation with Moscow and Beijing in a global context marked by strategic rivalry and the fragility of international trade.
