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Donald Trump imposes additional 25% tariff on India, cites New Delhi's Russian oil imports

Donald Trump imposes additional 25% tariff on India, cites New Delhi's Russian oil imports

The tariff will be effective for goods entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 am Eastern Daylight Time (EDT), 21 days after the date of this order.

Business Today Desk
Business Today Desk
  • Updated Aug 6, 2025 7:55 PM IST
Donald Trump imposes additional 25% tariff on India, cites New Delhi's Russian oil importsTrump imposes additional 25% tariff on India

US President Donald Trump on Wednesday signed an Executive Order imposing an additional 25 per cent tariff on India due to New Delhi's continued purchase of Russian oil. The order has been titled -- 'Prohibiting Certain Imports and New Investments With Respect to Continued Russian Federation Efforts To Undermine the Sovereignty and Territorial Integrity of Ukraine'. 

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The tariff will be effective for goods entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 am Eastern Daylight Time (EDT), 21 days after the date of this order.

The tariff will also be effective on goods entered for consumption or withdrawn from a warehouse for consumption before 12:01 am EDT on September 17. 

"Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent," the Executive Order signed by Trump read. 

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The ad valorem duty shall be in addition to any other duties, fees, taxes, exactions and charges applicable to imports unless they are subject to existing or future actions under section 232 of the Trade Expansion Act of 1962. 

Besides this, the order defined Russian Federation Oil as "crude oil or petroleum products extracted, refined, or exported from the Russian Federation, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products." 

It also places a tariff on purchasing Russian oil through intermediaries or third countries where the origin of the oil can be reasonably traced to Russia. 

The White House, however, has said that the tariff could be amended in case of foreign retaliation, aiming to preserve its intended economic impact. 

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Earlier in the day, China publicly supported India amid the tensions. A Chinese embassy spokesperson endorsed an editorial from The Hindu, affirming that "India’s sovereignty is non-negotiable."

Yu Jing, the spokesperson for the Chinese embassy in New Delhi, echoed this sentiment, stating that India's "foreign policy choices cannot be manipulated by other countries."

US President Donald Trump has criticised India's import of Russian oil, hinting at raising tariffs on Indian goods. Trump remarked, "India has not been a good trading partner," further stating, "They do a lot of business with us, but we don't do business with them."

India's Ministry of External Affairs accused the US and its allies of double standards, noting their trade with Russia.

"The US imports uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilizers, and chemicals," the statement read. "In this background, the targeting of India is unjustified and unreasonable."

Published on: Aug 6, 2025 7:37 PM IST
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