Donald Trump doubles tariff on India to 50%
New Delhi, Aug 6: In an escalation of trade tensions, United States President Donald Trump on Wednesday signed an executive order imposing a 25 percent ad valorem tariff on all Indian imports into the United States.
The move, effective from August 27, comes in response to what the Trump administration calls India's continued direct and indirect imports of oil from the Russian Federation, an act the White House says undermines the international sanctions regime and US national security interests.
The sweeping order, issued under the authority of multiple US trade and national emergency statutes, including the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974, represents the most severe unilateral trade action taken against India in recent years.
The additional tariffs will apply to all Indian-origin goods entering the US unless specifically exempted, and are layered on top of any existing duties.
Citing the continuation of the national emergency declared in Executive Order 14066 - first signed in March 2022 in response to Russia’s invasion of Ukraine - Trump wrote, “I find that the Government of India is currently directly or indirectly importing Russian Federation oil.”
The order specifically defines indirect imports to include purchases through intermediaries or third countries when the origin of the oil can reasonably be traced back to Russia.
Trump said: “To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India.”
According to the order, this new tariff measure is designed to reinforce and complement existing US sanctions on Russian energy exports and to penalise countries that continue to engage in trade that benefits Russia’s war economy.
Implementation Timeline and Exemptions
The 25 percent tariffs will take effect at 12:01 am EDT on August 27, 2025, and apply to all Indian goods entering the US, with two exceptions: goods that were already loaded for shipment and are in transit before the deadline, and goods entered for consumption before 12:01 am EDT on September 17, 2025.
Some categories of imports may be exempt under specific provisions, including those listed in previous executive orders or covered by domestic status designations within foreign trade zones.
However, US Customs and Border Protection has been authorised to strictly enforce the new duty rules, and the Secretary of Homeland Security may revise the Harmonised Tariff Schedule to accommodate the policy.
The executive order also confirms that these duties will stack with previously imposed tariffs under Executive Order 14257 of April 2025, which introduced reciprocal tariffs to address trade deficits.
“The ad valorem duty imposed in Executive Order 14257 shall apply in addition to the ad valorem duty imposed in section 2 of this order,” it states.
This effectively means some categories of Indian exports may face a combined tariff burden of over 50 percent, depending on their classification.
The order leaves room for future escalation.
Section 4 authorises the US President to modify or expand the scope of the action if India retaliates or if additional countries are found to be engaging in similar Russian oil purchases.
The Secretary of Commerce and the Secretary of State are tasked with monitoring such activities and recommending further actions.
“Should the Government of the Russian Federation or a foreign country impacted by this order take significant steps to address the national emergency, I may further modify this order,” Trump wrote.
The administration has also signalled that additional countries could be targeted if found to be violating US sanctions by purchasing Russian oil, either directly or indirectly.
Geopolitical and Economic Impact
India has repeatedly defended its decision to import Russian oil at discounted rates, arguing that it is driven by energy security needs.
However, the new US tariffs are likely to test the limits of the strategic partnership between Washington and New Delhi, especially since India has said that it will continue to purchase oil from Russia.
Political observers warn that the tariffs could have significant economic fallout for both Indian and US exporters.
In New Delhi, officials were yet to issue a formal response at the time of filing this report.
However, senior diplomatic sources indicated that high-level consultations are likely in the coming days.
This development not only marks a turning point in US-India trade relations but also in political relations.
