Donald Trump Doubles Tariffs on Indian Imports to 50% Over Russian Oil Purchases

In a sharp escalation of trade tensions, US President Donald Trump has signed an executive order doubling tariffs on Indian imports to 50%, citing New Delhi’s continued purchases of Russian oil. The move adds an additional 25% ad valorem duty on top of the existing 25% tariff, and is set to take effect in 21 days.

The decision was announced late Wednesday by the White House and comes just a day after Trump hinted in a CNBC interview that he would “substantially raise” tariffs on India.

Why the Tariff Hike?

The White House order specifically links the increase to India’s direct and indirect imports of Russian crude oil. It states that these imports undermine US efforts to address the national emergency declared in Executive Orders 14024 and 14066, aimed at penalizing Russia for its actions in Ukraine.

The order argues that the additional tariff will more effectively address the threat posed by Russia’s continued aggression and will discourage countries from circumventing US sanctions by buying Russian oil.

Details of the Executive Order

• Additional Duty: 25% added to the existing 25% tariff, making the total 50% on Indian imports.
• Implementation Timeline: Effective 21 days from the date of signing (with exemptions for goods already shipped before the deadline).
• Scope: Applies to all goods imported from India into the US customs territory.

India’s Strong Rebuttal

The Ministry of External Affairs (MEA) has condemned the move as “unfair, unjustified, and unreasonable”, accusing the US of unilateral targeting. India also pointed out that the European Union continues its own trade with the US despite political differences, arguing that Washington’s punitive measures unfairly single out New Delhi.

The decision was “politically motivated and economically harmful”, warning that it could impact bilateral trade relations, which have already been strained by earlier tariff hikes under the Trump administration.

Economic and Trade Implications

The tariff hike comes at a sensitive time for India–US trade, with bilateral goods trade exceeding $190 billion in 2024. Indian exporters, particularly in sectors such as textiles, engineering goods, pharmaceuticals, and IT hardware, could face significant cost disadvantages in the US market.

Economists warn that the move may prompt India to diversify its export markets further and could push New Delhi to deepen trade ties with partners like Russia, China, and Southeast Asian economies.

Geopolitical Backdrop

This tariff escalation is part of a broader geopolitical standoff. The US and its allies have been attempting to limit Russia’s oil revenues following the Ukraine invasion, while India has defended its energy purchases as driven by national interest and price stability.

Trump’s latest move also aligns with his “America First” trade approach, which has included tough tariff actions against China, Mexico, and the European Union.