U.S Doubles Tariffs On Indian Goods To 50% As A Penalty For Buying Russian Oil

U.S President Donald Trump has hit India with an additional 25% tariff due to its purchase of Russian oil.

This will increase the total tariff on indian imports to the U.S to 50%.

The rates will come into effect on August 27, 2025.

The U.S has stated that India’s imports of Russian oil undermine its efforts to counter Moscow’s activities in Ukraine.

It also added that the U.S will determine which other nations import oil from Moscow and take appropriate actions if needed.

India is now the largest buyer of Russian oil and accounts for over 3% of India’s overall supplies.

Russia’s biggest exports include oil and gas, and its biggest customers are China and Turkey, apart from India.

India bought around 1.75 million barrels a day of Russian oil in the first 6 months of 2025.

The tariff hike comes after meetings on Wednesday by Trump’s top envoy, Steve Witkoff, in Moscow, aimed at securing peace between Russia and Ukraine.

The extra tariff would mean a 50% duty on major indian exports including textiles, jewellery, seafood, gems and auto parts.

For now, electronics, iPhones and pharma are exempt.

Delhi earlier called Trump’s threat to increase tariffs over buying Russian oil as unreasonable and unjustified, stating that India has acted in its national interest.

In a previous statement, a spokesperson for India’s Foreign Ministry said the U.S had encouraged India to import Russian gas at the beginning of the conflict to stabilise global energy markets.

He said India began importing from Russia as traditional supplies were diverted to Europe after the conflict broke out.

This move by the U.S shows Trump’s willingness to impose sanctions related to war in Ukraine against countries that the U.S consider to be vital allies or trading partners.

This might be a warning that other countries could also be affected when Trump increases sanctions once Friday deadline passes, when the U.S President threatened new sanctions on Russia and to place 100% tariffs on countries that purchase its oil.

India has also previously criticised the U.S for introducing levies when the U.S itself is doing trade with Russia.

The tariffs are expected to make Indian goods costlier in the U.S and could cut US-bound exports by 40 to 50%.

Former Indian trade official and head of GTRI, Ajay Srivastava, said that India should not retaliate for at least 6 months and recognise that trade negotiations with the U.S cannot go ahead under threats or mistrust.

Source: Maritime Shipping News