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Trump slaps 50% tariff on Indian goods over Russian oil
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India calls out western double standards
On August 6, 2025, US President Donald Trump signed an executive order imposing an additional 25% tariff on Indian goods, raising the total tariff on Indian exports to the US to a staggering 50%—the highest for any US trading partner alongside Brazil.
This unprecedented hike is in direct retaliation for New Delhi’s continued purchase of Russian oil, despite concerted Western efforts to restrict Moscow’s energy revenues amid the ongoing war in Ukraine.
India’s Strong Pushback
The Indian government called the move “unfair, unjustified, and unreasonable,” highlighting that its energy imports are driven purely by market needs to secure energy for its 1.4 billion citizens. India further accused the US of selectively targeting it, while allowing other countries—including US and EU allies—to continue importing Russian fossil fuels without facing comparable consequences. Indian officials vowed to take “all necessary actions to protect national interests” in response.
Major Export Sectors Under Threat
The 50% tariff, set to take effect from August 27, 2025, will hit India’s key export sectors such as seafood, textiles, gems and jewelry, and auto parts especially hard.
With the US being India’s largest export destination—buying nearly $87 billion worth of goods in 2024—analysts warn that these measures could dent India’s GDP growth and erode its appeal as a global manufacturing hub.
Industry leaders have dubbed the tariff increase “doomsday” for Indian exporters, some of whom are now considering shifting production abroad.
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Trump’s steep new tariffs on Indian goods over Russian oil imports have upended bilateral trade relations and revealed the complexities—and inconsistencies—of Western sanctions enforcement in the global energy market
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India’s officials and business sectors are pushing back, calling for fairer treatment and highlighting the mixed record of US and European restrictions on Russian energy
Western Double Standards on Russian Energy
India has repeatedly called out what it sees as Western hypocrisy. Despite strong rhetoric against Russian energy, EU countries and the US both maintain significant trade links with Moscow:
European Union: EU imports from Russia have only partially declined due to self-imposed sanctions and are set to be phased out more gradually under new roadmaps. Some EU nations, like Hungary, continue to import Russian oil and gas, while recent data shows the bloc spent over $105 billion on Russian gas since 2022. Imports of Russian LNG by the EU rose 9% in 2024.
United States: US-Russia trade, though much reduced since pre-Ukraine war levels, still totaled $5.2 billion in 2024.
China: Despite being the largest buyer of Russian energy, China so far faces no comparable US tariffs. In June 2025, China accounted for 38% of Russia’s fossil fuel export earnings, with crude oil as the dominant import.
Meanwhile, China’s purchases of Russian crude in volume terms declined 11% due to new US sanctions and shifting market dynamics, not direct punishment from the US.
Trump’s Message and Potential for Broader Sanctions
President Trump has signaled the possibility of further penalties on other countries, including China, if they continue importing Russian oil. The latest executive order directs officials to identify additional nations trading with Russia and recommend further measures if required.
India Faces the Highest Tariff Burden
With the new measures, India is now tied with Brazil for the highest US tariff rate at 50%, followed by Switzerland (39%), Canada and Iraq (35%), and China (30%). The escalation marks a historic low in US-India economic ties and risks reshaping global trade alliances.
