Daijiworld Media Network – New Delhi
New Delhi, Aug 6: In a dramatic escalation of trade tensions, United States president Donald Trump has imposed an additional 25% tariff on Indian imports, citing New Delhi’s continued purchase of Russian crude oil.
The move, announced late Wednesday night, takes the total duty on Indian goods entering the US to 50%—20% higher than on China, and 21% more than on Pakistan.
Labelled a “penalty” for aiding Moscow’s war economy, the tariff hike was formalised in an executive order signed earlier today. Trump stated: “I find the Government of India is currently, directly or indirectly, importing Russian Federation oil... In my judgement, I determine it necessary to impose an ad valorem duty on imports of articles from India...”
The announcement follows a series of scathing remarks by Trump about India’s trade policies. In an interview with an American TV channel, he said: “India has not been a good trading partner... they do a lot of business with us... so we settled on 25%... but I think I'm going to raise that very substantially over the next 24 hours because they're buying Russian oil.”
The tariff increase builds on an earlier decree issued on July 30, in which Trump declared that India would face a 25% tariff, along with an unspecified ‘penalty’, for its ongoing purchase of Russian oil and military equipment.
That announcement came just 48 hours before a deadline Trump had set for “reciprocal tariffs” on several major American trading partners—a plan first announced in April but temporarily suspended to allow for diplomatic negotiations.
In his latest comments, Trump also lashed out at what he described as India’s restrictive trade environment: “...India is our friend (but) we have, over the years, done relatively little business with them because their tariffs are far too high—among the highest in the world. And they have the most strenuous and obnoxious non-monetary trade barriers of any country.”
Reacting to Trump’s criticism, the Indian government defended its trade policy, emphasising that the import of Russian crude oil is driven by economic necessity.
In a statement, the ministry of external affairs said: “India buying oil is a necessity compelled by the global market situation,” adding that many Western nations, including the US, “indulge in trade with Russia” for goods that are not vital compulsions.
The government further noted that India’s actions are consistent with its national interests, and highlighted the ongoing energy crisis that has forced several nations to make pragmatic choices in sourcing fuel.