Trump Announces 50% Tariffs on India for Russian Oil Imports: Escalation of U.S.-India Trade War

The United States President, Donald Trump, announced significant tariffs against India, one of America’s major trading partners, on Wednesday. Effective Thursday, a 25% import duty will be implemented, with an additional 25% tariff to follow later this month as retaliation for India’s imports of Russian oil and gas.

The cumulative tariff on goods imported from the world’s fifth-largest economy would thus rise to an impressive 50%, among the highest rates imposed by the US.

The latest executive order, as outlined in a White House document, signifies an escalation of trade tensions with New Delhi and the first application of so-called secondary sanctions on nations accused of fueling Russia’s war effort.

The order states that India is “currently directly or indirectly importing Russian Federation oil,” justifying the imposition of the new 25% tariff on Indian goods.

The Russia-related tariffs will take effect in three weeks, while the previously threatened 25% duty becomes effective on Thursday.

The announcement followed hours after Trump’s envoy, Steve Witkoff, concluded a meeting in Moscow with Russian President Vladimir Putin.

Earlier this week, Trump had warned India about these tariffs, alleging their aid to Russia in its conflict in Ukraine.

“India is buying vast quantities of Russian Oil and selling it on the open market for substantial profits. They don’t care how many people are being killed by the Russian War Machine,” Trump posted on social media.

In response to the threat, India claimed it was unfairly targeted by the US and the European Union for importing oil from Russia.

The Indian Ministry of External Affairs explained that imports from Russia were initiated due to traditional supplies being redirected to Europe following the commencement of Russia’s war in Ukraine.

“India’s imports are essential to ensure stable and affordable energy costs for the domestic consumer, necessitated by global market conditions,” a statement released on Monday by the ministry’s spokesperson Randhir Jaiswal stated.

This story is developing and will be updated.