US President Donald Trump today signed an executive order imposing an additional 25 per cent tariff on Indian goods, citing New Delhi’s continued purchase of Russian oil — a revenue source the White House says is sustaining Moscow’s war in Ukraine.
The new measure, to take effect in 21 days, will be added on top of a separate 25 per cent tariff due to come into force on Thursday, effectively doubling the overall duty on Indian imports to 50 per cent.
In tariff rankings, India now matches Brazil at the top with 50 per cent, followed by Switzerland at 39 per cent, Canada and Iraq at 35 per cent, and China at 30 per cent.
“The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the Centre said in a statement.
Trump’s order also imposes “reciprocal” tariffs ranging from 10 per cent to 41 per cent on imports from 69 countries and territories. These rates will apply from August 7, just hours before an earlier deadline for a tariff agreement with Mexico was due to expire. The administration extended the Mexico deadline by 90 days.
Brazil, initially facing a 10 per cent reciprocal tariff, will see an additional 40 per cent levy from August 1, linked to US objections over the prosecution of former Brazilian president Jair Bolsonaro – bringing its total to 50 per cent. Canada’s total tariff rate of 35 per cent will also take effect on August 1.
The official order links the decision to what the Trump administration calls a “national emergency”. It states that India is “directly or indirectly importing Russian Federation oil” and that imposing the additional 25 per cent duty “will more effectively deal” with that emergency.
Prime Minister Narendra Modi has sought to maintain close relations with both Trump and Russian President Vladimir Putin, positioning India as a neutral actor in the Russia-Ukraine conflict. This balancing act has frustrated Western governments that have sanctioned Moscow.
