On August 6, 2025, U.S. President Donald Trump signed an executive order to impose an additional 25% tariff on Indian goods, specifically targeting India’s ongoing import of Russian oil. This new levy will stack on top of the existing 25% duty, bringing the total tariff burden to 50%, effective August 27, 2025.
Why It Matters
A Strategic “Secondary Tariff”
The additional 25% duty is termed a “secondary tariff”, designed to discourage countries from indirectly supporting Russia through energy imports—a departure from standard tariff enforcement.
India’s Strong Reaction
India condemned the move as “unfair, unjustified, and unreasonable”, highlighting its energy imports stem from market factors and national necessity.
Economic and Diplomatic Fallout
Analysts warn the 50% tariff could severely disrupt Indian exports—including textiles, gems, and machinery—and dampen investor confidence. It could also strain the expanding economic and strategic relationship between the U.S. and India.
Summary Table
| Aspect | Details |
|---|---|
| Additional Duty | 25% on top of existing tariffs, totaling 50% from August 27 |
| Target | Indian goods linked to Russia oil imports |
| Designation | “Secondary tariff” aimed at deterring ties with Russia |
| India’s Response | Condemned as unfair; reaffirmed imports serve energy security |
| Impact Outlook | Risk of export disruption, trade friction, and investor caution |
