Trump Hits India with 50% Tariff Over Russian Oil Imports

By Global Leaders Insights Team | Aug 07, 2025

US President Donald Trump has escalated trade tensions with India, signing an executive order on August 6, 2025, to impose an additional 25% tariff on Indian imports, bringing the total tariff to 50%.

This comes hot on the heels of a 25% tariff that started today, August 7, with the new hike set to begin in three weeks. The White House says it’s targeting India’s purchase of Russian oil, arguing it supports Russia’s war in Ukraine and threatens U.S. security and foreign policy.

India’s government didn’t hold back, calling the tariffs “unfair and totally unjustified.” The Ministry of External Affairs explained that India buys Russian oil to keep energy costs manageable for its 1.4 billion people. They also pointed out that the U.S. imports things like uranium and fertilizers from Russia and even pushed for such trade before to keep global energy markets steady.

  • Trump Slaps 50% Tariff on Indian Imports Over Russian Oil Trade
  • India Decries U.S. Tariffs as Unfair Amid Rising Trade Tensions with Trump
  • Indian Exports to U.S. Face Major Hit as Trump Targets Russian Oil Deals

With this 50% tariff, India joins Brazil as one of the hardest-hit U.S. trading partners, facing higher taxes than China (30%) or Canada (35%). This could spell trouble for Indian exporters, especially in textiles, auto parts, gems, jewelry, and chemicals. Trade expert Ajay Srivastava predicts a 40-50% drop in India’s exports to the U.S. Thankfully, medicines and electronics like iPhones are off the hook for now.

Indian businesses are rattled. The Federation of Indian Export Organisations called the tariffs “a huge shock,” warning that over half of India’s $86.5 billion in exports to the U.S. this year could take a hit. Commerce Minister Piyush Goyal promised to fight for India’s interests, with trade talks slated for August 25. Opposition leader Rahul Gandhi called the tariffs “economic arm-twisting” and urged India to stay strong.

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This trade clash could strain ties between the U.S. and India, with bigger global consequences on the horizon. The next few weeks will be crucial as both sides navigate this tense standoff.