USA Trump Slaps India with 50% Tariff for Russian Oil Buys

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US President Donald Trump has enacted a new executive order imposing a hefty 50% tariff on Indian imports due to its continued purchases of Russian oil. Global markets have been shaken by this decision, which represents one of the highest tariff increases imposed by the US. The new rate is set to take effect on 27 August, just 21 days from now.

 

India's foreign ministry has expressed strong opposition, labelling the tariff as "unfair, unjustified, and unreasonable." In a statement, New Delhi's government emphasised its commitment to protecting national interests and criticised the US for targeting India while ignoring similar actions by other nations. Trump's administration has justified the tariff by claiming India's oil imports undermine US efforts to counter Russia's aggression in Ukraine.

 

The tariff hike represents a significant escalation, potentially stifling key Indian exports like textiles, gems, and auto parts, although electronics and pharmaceuticals remain exempt for the moment. India argues that its oil imports from Russia began as a response to shifting global energy supplies after European nations diverted their traditional sources.

 

The US has also indicated that it will take further action against nations purchasing Russian oil, signalling a broader strategy aimed at countries perceived as not aligned with American foreign policy objectives. This move, while not unexpected given Trump’s previous threats, demonstrates the potential strain on US-India relations, reported the BBC.

 

As the largest buyer of Russian oil, India currently imports about 1.75 million barrels a day from Russia, which accounts for more than 35% of its total oil imports. This reliance poses a complicated scenario for India, balancing economic needs with geopolitical dynamics.

 

Despite past camaraderie between Trump and Indian Prime Minister Narendra Modi, the new tariffs highlight diverging national interests. The Federation of Indian Exports Organisations has expressed shock, warning of a 40–50% drop in US-bound Indian exports, which could significantly impact the economy.

 

Analysts urge India to approach the situation with caution, advising against retaliation and advocating for diplomatic negotiations without succumbing to coercive trade pressures. As the situation develops, the world watches closely, awaiting India's next move in this unfolding trade saga.

 

  Adapted by ASEAN Now from BBC 2025-08-08

 

[Tug]

Taco inbound he’s posturing,trying to convince his marks that he’s tough on putin we know better.

[TedG]

15 minutes ago, Tug said:

Taco inbound he’s posturing,trying to convince his marks that he’s tough on putin we know better.

The other day you said this would not happen.

[Yagoda]

14 minutes ago, TedG said:

The other day you said this would not happen.

He just babbles hate towards the USA.

[sharot724]

India isn’t flinching: Why Trump might be misreading India’s tariff playbook

 

 

[DonniePeverley]

India have to be careful. Tarffs is one thing, but if they start putting restrictions on Visas for indians then it's game over. 

[sharot724]

1 minute ago, DonniePeverley said:

India have to be careful. Tarffs is one thing, but if they start putting restrictions on Visas for indians then it's game over. 

Almost all of the Santa Clara Valley technology firms, the software employees are from India.

Messing with there Visa's would come at a cost.