Trump orders India tariff hike to 50% for buying Russian oil

US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian goods in response to New Delhi’s continued purchases of Russian oil. The move effectively doubles the existing tariff rate on Indian imports to a steep 50%, one of the highest duties ever levied by the US on a key trading partner.

The new tariff structure is set to take effect on August 27, giving businesses just 21 days to adjust. The White House, in its official statement, justified the move as part of a broader effort to counter Russia’s ongoing military operations in Ukraine, which Washington views as a serious threat to US national security and foreign policy interests.
“India’s continued procurement of Russian crude undermines the United States' strategic efforts to isolate Moscow,” the statement read. It further noted that the administration is actively monitoring other nations’ trade with Russia and may advise the president to take additional measures against them as needed.
India, for its part, has strongly criticized the tariff hike. In a formal response on Wednesday, the Ministry of External Affairs called the measure "unfair, unjustified, and unreasonable," emphasizing that India’s energy purchases are based on economic needs and national interests. “It is deeply regrettable that the United States has chosen to single out India while several other countries continue similar trade practices,” the statement said, warning that India will take “all necessary steps” to safeguard its sovereign economic decisions.
India has significantly ramped up its imports of discounted Russian crude since the Ukraine conflict began. According to data from commodities analytics firm Kpler, Russia now accounts for over 35% of India's total oil imports, making it the country’s largest energy supplier. In the first half of 2025 alone, India purchased an average of 1.75 million barrels of Russian oil per day, marking a major shift in global oil trade flows amid Western sanctions.
Speaking at a press briefing later in the day, President Trump hinted that more punitive measures could be on the horizon. “This is just the beginning,” he said. “Expect a lot more — secondary sanctions are coming.”
The latest move adds fresh strain to US-India relations at a time when both nations are trying to balance strategic cooperation with divergent geopolitical interests. While Washington views India's energy ties with Russia as a challenge to its sanctions regime, New Delhi argues that energy security and affordability for its 1.4 billion citizens remain a top priority.