United States President Donald Trump has issued an executive order imposing an additional 25 percent tariff on goods from India, citing the country’s importation of Russian oil as a reason. This new measure adds to the existing 25 percent tariff that India already faces, bringing the total tariff rate to 50 percent, one of the highest in the U.S. trade system under Trump.
In his executive order, Trump stated that Russia’s ongoing military actions in Ukraine constitute a “national emergency.” He argued that it is “necessary and appropriate” to impose higher tariffs on India, which is a major consumer of Russian petroleum products. The order claims that the Indian government is directly or indirectly importing Russian oil, and that Russia’s actions continue to pose a significant threat to U.S. national security and foreign policy.
The tariff increase is scheduled to take effect 21 days after the announcement, providing a window for negotiations between India and the U.S. to potentially lower the rate. However, the move has the potential to further strain U.S.-India relations. Brazil is the only other country currently facing a 50 percent overall tariff rate.
India’s Ministry of External Affairs responded swiftly to the executive order, calling the tariffs “unfair, unjustified, and unreasonable.” The statement questioned why India was being targeted while other countries importing Russian oil were not. It emphasized that India’s imports are based on market factors and aimed at ensuring energy security for its 1.4 billion people.
India and the U.S. had engaged in five rounds of trade talks prior to the announcement. In April, U.S. Vice President JD Vance traveled to New Delhi to assist in the negotiations. Despite these efforts, no trade agreement was reached, and experts suggest that U.S.-India relations are now experiencing their most serious crisis in recent years.
India’s challenges in securing a favorable trade deal contrast with Pakistan’s success in negotiating a lower tariff rate earlier this year. Meanwhile, reports indicate that Indian Prime Minister Narendra Modi will visit China later this month, marking his first trip to the country in over seven years. The visit is expected to signal a thaw in bilateral tensions, despite past disputes over borders and water rights.
The relationship between Trump and Modi had been considered strong, with Modi being among the first foreign leaders to visit Trump after his second term began. During Trump’s first term, he even hosted a rally in Texas for Modi, calling it “Howdy Modi.” Modi, in turn, embraced Trump’s “Make America Great Again” slogan, adapting it to “Make India Great Again.”
However, Trump has expressed concerns about India’s economic practices, claiming they are unfair to the U.S. He has also sought to reduce trade deficits with foreign partners. According to U.S. trade data, India exported approximately $87.3 billion in goods and services to the U.S. in 2024, compared to $41.5 billion in U.S. exports to India.
Relations have been further strained by Trump’s claim that he brokered a peace between India and Pakistan following an armed standoff in May. Modi has denied any such involvement. Additionally, Trump has grown increasingly critical of Russia, despite his previous warm relationship with President Vladimir Putin.
Upon re-election, Trump positioned himself as a “peacemaker,” initially pledging to end the war between Russia and Ukraine within 24 hours, a promise he later retracted as “sarcastic.” Nevertheless, he has continued to push for peace negotiations. A deadline set for Russia to end its military campaign in Ukraine is set to expire on Wednesday.
Russia’s full-scale invasion of Ukraine began in February 2022, leading to a prolonged and costly conflict. In his executive order, Trump left open the possibility that other countries importing Russian oil could face similar tariffs. He also reserved the right to modify the order if retaliatory measures were taken or if countries like India took steps to align with U.S. policy goals.
The tariff announcement followed meetings between Trump’s top diplomatic envoy, Steve Witkoff, and Russian officials in Moscow, aimed at advancing peace talks. Indian National Security Adviser Ajit Doval was also in Russia this week, reportedly discussing pressure on India to reduce its purchases of Russian oil.
Al Jazeera correspondent Kimberly Halkett noted that several countries, including China and Turkey, continue to import Russian oil, yet they were not included in Trump’s executive order. She pointed out that China remains the largest buyer of Russian oil, while India ranks second. Despite this, Trump officials view India’s imports as a threat to U.S. interests, arguing that the discounted oil is funding Russia’s military operations in Ukraine.
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