Trump doubles India's tariffs over Russian oil
By: Joey Garrison
USA Today
WASHINGTON - President Donald Trump signed an executive order imposing an additional 25% tariff on imports from India in retaliation for the country's Russian oil imports.
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The additional levy would double India's U.S. Tariff rate to 50% following a previously announced 25% tariff set to go into effect August 7 [2025] under a separate order Trump issued last week. [08/01/2025]
..... Trump's August 6 [2025] move marks the first time the president has deployed his so-called "secondary tariffs" on Russian trading partners that he threatened if Russian President Vladimir Putin did not agree to a cease fire to end his country's war in Ukraine. The additional 25% Indian tariff goes into effect in 21 days under the order.
..... The action, which could further complicate U.S.-India relations, comes shortly after Reuters reported that Indian Prime Minister Narendra Modi would visit China for the first time in over seven years later this month. [08/2025]
..... Trump's executive order does not mention China, which also buys Russian oil. A white House official had no immediate comment on whether an additional order covering those purchases would be forthcoming.
..... U.S.-India ties are facing their most serious crisis in years after talks with India failed to produce a trade agreement.
.... The move is expected to hit key Indian export sectors including textiles and footwear and marks the most serious rift in U.S.-India relations since Trump returned to office in January. [2025]
..... "India will take all actions necessary to protect its national interests," India's external affairs ministry said in a statement to Reuters, saying it was "extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their won national interest."
..... It said India's imports were based on market factors and aimed at energy security for its population of 1.4 billion.
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Trade analysts warned the tariffs could severely disrupt Indian exports.
..... "With such obnoxious tariff rates, trade between the two nations would be practically dead," Madhavi Arora, an economist at Emkay Global, told Reuters.
..... India's refusal to curb Russian oil purchase, which surged a record $52 billion last year, [2024] ultimately triggered the tariff escalation.
..... "Exports to the U.S. become inviable at this rate. Clearly, risks to growth and exports are rising, and the (Indian) rupee may face renewed pressure," Garima Kappor, an economist at Elara Securities, told Reuters. "Calls for focal support are likely to intensify."
..... Indian officials have privately acknowledged growing pressure to return to the negotiating table.
..... A senior Indian official told Reuters that New Delhi was blindsided by the sudden imposition of the new levy and the steep rate as both countries continue to discuss trade issues.
..... Trump's decision follows five rounds of inconclusive trade negotiations, which stalled over U.S. demands for greater access to Indian agriculture and dairy markets.
..... Trump's top diplomatic envoy Steve Witkoff took part in meeting in Moscow this week [08/05/2025] aimed at pushing Russia to agree to peace in Ukraine, but the er sluts of those efforts are unclear.
..... Contributing: Reuters