US President Donald Trump signed a new executive order imposing an additional 25% tariff on Indian imports, citing India’s continued oil trade with Russia as the reason. This fresh move brings the total U.S. tariff burden on Indian goods to a staggering 50%.
The first round of 25% tariffs, approved on July 31, will take effect on August 7. The second set of 25% duties will enforced after a 21-day period, intensifying trade tensions between the two nations.
Trump justified the decision under Executive Order 14066, which relates to the ongoing situation in Ukraine. “To deal with the national emergency described… I determine it is necessary and appropriate to impose an additional duty on imports of articles from India, which is directly or indirectly importing oil from Russia,” the executive order stated.
MEA Slams Trump Tariffs as “Unfair, Unjustified, and Unreasonable”
Reacting strongly, India’s Ministry of External Affairs (MEA) reiterated its earlier stance, condemning the tariffs as “unfair, unjustified, and unreasonable.” The ministry emphasized that India’s energy imports are based on market conditions and are essential for meeting the needs of 1.4 billion citizens.
In response to the tariff threat, India’s Ministry of External Affairs (MEA) on August 4 criticized the U.S. stance, highlighting the double standards in Washington’s approach. The MEA pointed out that not only did the U.S. previously encourage such trade, but both the United States and the European Union continue to engage in commerce with Russia—far exceeding India’s payments for Russian oil.
“We have already clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,” the MEA stated. “It is deeply unfortunate that the U.S. has chosen to target India with additional tariffs for actions that many other countries are also undertaking in pursuit of their national interests.”
The ministry reiterated its stance, calling the tariffs “unfair, unjustified, and unreasonable,” and asserted that India will take all necessary steps to protect its national interests.
Major Blow to Indian Exports
The new tariffs are expected to significantly impact Indian exporters. S.C. Ralhan, president of the Federation of Indian Export Organisations, warned that nearly 55% of India’s exports to the U.S. would be directly affected.
“This tariff move places Indian exporters at a 30%–35% competitive disadvantage compared to nations with lower duties,” Ralhan said.
