Trump doubles tariffs on Indian goods. Washington, August 18, 2025 In a sweeping escalation of trade tensions, U.S. President Donald Trump signed an executive order on August 6, 2025, that will double tariffs on Indian goods to 50%, effective August 27, citing India’s continued purchase of Russian oil as a national security threat.
Key Facts & Context
The executive order imposes an additional 25% tariff, bringing the total U.S. Trump doubles tariffs on Indian goods import duty on Indian goods to 50%, among the highest levied on any nation, alongside Brazil. The tariff increase is positioned as a response to India’s ongoing imports of Russian oil, which the Trump administration claims help fund Moscow’s war effort in Ukraine. The tariffs will take effect 21 days after signing, that is, on August 27, 2025, although goods imported or withdrawn by September 17, 2025, may be exempt.
Strategic and Economic Impact
The heavy toll on Indian exports has prompted domestic financial institutions to consider economic relief, including fee waivers, flexible loan terms, and additional working capital support for exporters. The steep tariffs threaten to slash India’s export revenues significantly, with forecasts suggesting a potential $50 billion decline in trade, putting serious strain on the national and state economies. The broader bilateral relationship is strained, with analysts warning that these economic hostilities may unravel strategic cooperation between the two nations, particularly within the Indo-Pacific and Quad frameworks.
Indian Response & Diplomatic Fallout
India’s Ministry of External Affairs dismissed the measure as “unfair, unjustified, and unreasonable,” asserting its right to pursue energy security for its population independent of foreign pressure. In Maharashtra, authorities formed a high-level committee to assess the tariffs’ impact and devise mitigation strategies, emphasizing export diversification and regulatory reforms to sustain local industries.
US adviser Navarro says India’s Russian crude buying must stop
Read more: India will buy Russian oil despite Trump’s threats
