U.S. President Donald Trump signed an executive order placing a fresh 25% tariff on Indian goods, specifically motivated by India’s continued purchases of Russian oil. This layered levy stacks atop a 25% charge announced just last week and will take effect within 21 days.
Trump’s move came shortly after U.S.-Russia talks on Ukraine failed to produce a breakthrough. Trump accused India of “fueling the war machine,” stating that continuing to import Russian oil would earn his disapproval. Prime Minister Narendra Modi defended India’s energy strategy as essential to economic support, but Trump remained unconvinced.
India’s External Affairs Ministry blasted the tariff as “unfair, unjustified and unreasonable,” promising “all actions necessary to protect its national interests.” Meanwhile, Ajay Sahai of the Federation of Indian Export Organisations warned that the export sector faces a severe setback, with disrupted orders and potential long-term client losses.
The U.S. is expanding tariffs on dozens of trading partners tomorrow, making India one of the primary targets of Trump’s strategy to shrink trade deficits, bolster domestic manufacturing, and raise federal revenue. These trade measures carry the risk of higher costs and broken global supply chains.
Trump previously imposed a unilateral 25% charge after failed negotiations with New Delhi. He criticized Modi’s government for limited market access for U.S. agricultural exports and targeted India’s BRICS membership. India has resisted increasing imports, especially in farm and dairy sectors, to protect domestic producers.
Trump has also threatened tariffs on India’s pharmaceutical exports, a major component of its trade with the U.S. With over $10.5 billion in pharma exports during 2024–25, some 40% of Indian exports to the U.S. would be disrupted, compounding existing duties on steel, aluminum, and autos.
Indian officials insist the U.S. and EU are hypocritical for continuing to import certain Russian goods, calling their criticism a double standard. Trump has used tariffs not only on trade but also as geopolitical tools to pressure Russia to halt its invasion of Ukraine, a conflict entering its fourth year.
