US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian goods, effective in 21 days, on top of the existing 25% duty — taking the total tariff to 50%, the highest rate India has faced from the US.
The White House said the move comes in response to India’s continued purchase of Russian crude oil despite repeated warnings. In an interview with CNBC, Trump accused India of “helping finance” Russia’s war against Ukraine, adding that he had initially settled on a 25% tariff but decided to raise it “very substantially” within 24 hours.
India has defended its energy trade with Russia, saying it will act in line with its national interests.
Economic and Political Reactions
- MEA Statement: Called the US decision “extremely unfortunate,” stressing India’s sovereign right to decide its energy policy.
- FIEO Warning: The Federation of Indian Export Organisations said the steep duty will affect 55% of India’s exports to the US, with MSME-led sectors such as textiles, marine products, and leather among the hardest hit.
- RBI Outlook: Reserve Bank Governor Sanjay Malhotra said he does not foresee a major impact on domestic inflation unless India retaliates with tariffs.
- Political Criticism: RJD leader Tejashwi Yadav termed the tariffs “classic trade bullying” and criticised the Indian government for not pushing back strongly.
See also
Global Trade Fallout
Brazil has approached the World Trade Organization (WTO) seeking relief from similar US tariff measures, signalling that Washington’s aggressive trade stance could trigger broader disputes.
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