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Trump's additional 25% tariff on India notified; order to take effect on August 27
The United States has announced a sharp increase in tariffs on Indian imports, doubling duties to 50 per cent from August 27. The move is aimed at pressuring India over its continued purchase of Russian oil as Washington pushes for an end to the war in Ukraine. New Delhi has strongly rejected the secondary tariffs, calling them unfair. Prime Minister Narendra Modi said India will protect farmers, small businesses and national interests despite external pressure.
The United States has moved to raise tariffs on Indian imports, with an additional 25 per cent duty set to push the overall rate to 50 per cent. The Department of Homeland Security confirmed the new measures will take effect from 12:01 am Eastern Daylight Time on 27 August as per their latest draft notice. The step follows US President Donald Trump's Executive Order 14329, signed earlier this month, which directs agencies to act against what Washington calls threats linked to Russia and its trade partners.
According to the draft notice issued by the Department of Homeland Security, the duties target India under the policy of countering “threats to the United States by the government of Russian Federation.”
“The duties set out in the Annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025,” it stated.
The order also referred to earlier restrictions. “To address that unusual and extraordinary threat to the national security and foreign policy of the United States, Executive Order 14066 prohibited, among other things, the importation into the United States of certain products of Russian Federation origin, including crude oil; petroleum; and petroleum fuels, oils, and products of their distillation,” the notice said.
A wide range of Indian goods are covered under the new decision. The document made clear that the tariffs apply to any items arriving for use in the United States or released from warehouses after the cut-off time.
Reason for the move
President Trump said the decision was linked to India's continued purchase of Russian oil, which Washington argues helps fund Moscow's war against Ukraine. Speaking earlier this month, Trump had warned that further sanctions or tariffs could follow if no breakthrough emerged in peace talks. “That's going to be up to them. It takes two to tango, I always say, and they should meet,” he said, referring to stalled negotiations between Russian President Vladimir Putin and Ukraine's Volodymyr Zelenskiy.Also Read: Trump threatens more tariffs and export ban on countries with digital taxes
India pushes back
India has condemned the additional duties as “unfair, unjustified and unreasonable”. Officials have said they hope progress in peace talks could eventually lead to the withdrawal of tariffs but stressed that New Delhi will continue to protect its national interests. Prime Minister Narendra Modi reiterated this message during a rally in Ahmedabad on Monday.“No matter how much pressure comes, we will keep increasing our strength to withstand it. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work,” Modi said.
He also pledged that his government would not allow harm to farmers, small entrepreneurs, or livestock rearers. “From the soil of Ahmedabad, I wish to tell you, promise you from the land of Gandhi, that the interests of small entrepreneurs, shopkeepers, farmers and livestock rearers are of utmost priority for Modi... Dabav kitna hi kyun na aaye, hum jhelne ki apni takat badhate jayenge,” he added.
Also Read: Trump says US has 'incredible cards' that could destroy China, warns of 200% tariff on rare earth magnets
Meanwhile, Foreign Minister S Jaishankar, speaking in Delhi on Saturday, mocked Washington's stance.
"It's ironic for a pro-business American administration to accuse others of doing business," he quipped, when asked about the US criticism. Taking a sharper swipe, he added, "If you don't like Indian oil or refined products, don't buy them. Nobody is forcing you. But Europe buys, America buys. So if you have a problem, just stop buying."
The tariffs mark a setback in US–India trade relations, with a planned round of bilateral talks already postponed. Washington has so far avoided imposing similar measures on other major buyers of Russian crude, most notably China. Meanwhile, Modi and Putin have held talks in recent weeks, with India signalling its intent to continue sourcing energy from Moscow.
The sharp escalation in tariffs now sets up a period of economic friction between two major trading partners, even as global efforts to bring Russia and Ukraine to the negotiating table remain at an impasse.
Source: EconomicTimes
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