Washington, D.C. — The United States has announced a dramatic increase in tariffs on Indian imports, raising them to 50% in response to India’s ongoing oil trade with Russia. The move, signed into action by President Donald Trump via executive order on Wednesday, is seen as one of the sharpest escalations in trade tensions between the two countries in recent years.
The White House said the additional 25% ad valorem duty will apply to all Indian goods entering the U.S., on top of an existing 25% tariff already set to take effect Thursday. Exemptions remain for sectors like steel, aluminum, and pharmaceuticals, but high-impact industries such as textiles, footwear, and gems & jewellery are expected to suffer.
Trump’s order stated the action was necessary because India’s continued engagement with Russian energy exports “undermines U.S. foreign policy and economic interests.”
India’s Ministry of External Affairs condemned the move, calling it “extremely unfortunate” and arguing that India’s energy decisions are driven by national interest and the needs of its 1.4 billion people.
“This move could cripple trade between the two nations,” warned Madhavi Arora, an economist at Emkay Global. She added that the 50% tariff would render Indian exports to the U.S. virtually uncompetitive.
The announcement follows months of stalled trade negotiations, with sticking points including U.S. demands for access to Indian agriculture and dairy markets. Washington’s frustration grew as India’s imports of Russian oil reached a record $52 billion last year.
Trade analysts say the tariff hike is likely to pressure the Indian government to reconsider its oil strategy. Privately, Indian officials have expressed shock at the sudden escalation and hinted at a possible phased reduction in Russian energy imports.
Trump intensified his criticism earlier this week, saying India was profiting from buying discounted Russian oil while ignoring the human cost of the war in Ukraine. In posts and interviews, he accused New Delhi of “fueling the war machine” and vowed to respond strongly.
Meanwhile, India’s National Security Adviser was in Moscow as news of the tariff broke, while the White House’s special envoy Steve Witkoff was also in the region, signaling heightened diplomatic activity.
The White House has not said whether other countries importing Russian oil, like China, will face similar penalties.
