Donald Trump Administration Imposes 25% Additional Tariff on India
In a move that has drawn a sharp reaction from New Delhi, US President Donald Trump’s administration has announced a 25% additional duty on certain items imported from India. The decision, formalised through an executive order, is in addition to the 25% duty announced last week, effectively raising the total duty on affected Indian products to 50%. This new duty will come into effect 21 days after the initial duty, which is scheduled for August 7, 2025.
The main justification given by US officials for this increased duty is India’s continued purchase of crude oil from Russia. Washington has repeatedly expressed its concerns, calling India’s oil trade with Russia an “irritant” in bilateral relations and accusing it of indirectly funding Russia’s actions against Ukraine. Trump administration officials have claimed that India’s oil imports from Russia have increased significantly since the conflict began, reaching nearly 1.6 million barrels per day in July, a major share of India’s total crude oil imports.
The Indian foreign ministry has reacted sharply to the development, calling the US decision “extremely unfortunate” and “unwarranted, unreasonable and unwise”. In a strongly worded statement, the ministry stressed that India’s oil import decisions are driven by market factors and are critical to ensuring the energy security of its 1.4 billion citizens. The statement reiterated that India will take all necessary steps to protect its national interests.
This massive increase in duties could put India at a competitive disadvantage in the US market compared to other countries with lower duty rates such as Myanmar (40%), Thailand and Cambodia (36%), and Bangladesh (35%). The move is expected to have a broad impact on India’s exports to the United States, although a limited exclusion list may apply.
This latest trade action by the Trump administration underscores the growing tensions between the two countries over India’s economic ties with Russia. It remains to be seen what retaliatory measures India will take, if any, and what the long-term impact of this tariff hike will be on bilateral trade relations.
Source: THE TIMES OF INDIA
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