President Donald Trump has taken a major swing at India's trade relationship with the U.S., slapping an additional 25% tariff on Indian imports in response to New Delhi's continued purchases of Russian oil—effectively doubling the total tariff burden on Indian goods to 50%.
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The White House announced the new trade action through an executive order on August 6, citing India’s ongoing direct and indirect imports of Russian crude oil and petroleum products as a threat to U.S. national security and foreign policy interests.
Trump Hits India With 50% Tariff Wall
"The Government of India is currently directly or indirectly importing Russian Federation oil," the order reads.
According to the White House, the move is intended to "more effectively deal with the national emergency" declared over Russian aggression and its global economic support network.
The new 25% tariff stacks on top of the existing 25% duties already levied on several categories of Indian goods, bringing the total to a striking 50% import tax.
The tariffs will apply starting Aug. 27, 2025, affecting all qualifying Indian goods entering U.S. customs, unless they were already in transit before that date. Products that left Indian ports before the deadline and arrive by Sept. 17 will be exempt.
India’s imports of Russian oil climbed 17.4% in June from May levels, reaching approximately 2 million barrels per day, Reuters reported
In 2024, the U.S. imported $91.2 billion of goods from India, according to the United Nations database on international trade. More than a third of those imports were made of electrical goods, pharmaceutical products, pearls, and metals.
The U.S. administration is also preparing to monitor other nations for similar ties with Russia. If found, they too could face a 25% tariff under the same executive framework.
Backchannel Talks With Russia: What Was Discussed?
U.S. Special Envoy Steve Witkoff met Russian President Vladimir Putin in Moscow on Wednesday.
According to Russian state media, the meeting reportedly lasted about three hours and followed Trump's recent threat to impose sanctions if Russia doesn’t advance peace negotiations in Ukraine.
Russian presidential aide Yuri Ushakov said the conversation was "useful and constructive."
He confirmed that the two key topics discussed were the Ukrainian crisis and the potential for renewed U.S.-Russia strategic cooperation.
Market Reactions: Gold And Silver Rebound, Dollar Drops
Gold prices rebounded sharply after the White House announcement, recovering early losses and climbing toward $3,380 per ounce.
Silver moved higher as well, rising 0.3% to $37.90 and heading for a fourth consecutive gain. WTI crude experienced sharp swings, dropping over 1% to $65.50 before rebounding to $66.
The S&P 500, tracked by the Vanguard S&P 500 ETF (NYSE:VOO), was up 0.6% by 11:30 a.m. ET.
The iShares MSCI India ETF (NYSE:INDA) was 0.6% lower, extending its fall from last week to 5%.
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