Trump Doubles Tariff on Indian Goods to 50%, Cites Russian Oil Imports; India Terms Move ‘Unjustified’

US President Donald Trump on Wednesday signed an executive order doubling tariffs on Indian goods from 25% to 50%, citing India’s continued purchase of Russian oil. The White House order, published on its website, confirmed that the additional 25% duty is aimed at penalising India’s alleged indirect support of the Russian Federation amid the ongoing Ukraine conflict.

This sharp escalation follows Trump’s earlier warning. In an interview with CNBC on Tuesday, the President criticised India’s trade practices, saying, “India has not been a good trading partner… We settled on 25 per cent, but I think I’m going to raise that rate quite substantially in the next 24 hours.”

What the Executive Order Says

The new executive order invokes the International Emergency Economic Powers Act (IEEPA), citing the ongoing national emergency originally declared in Executive Order 14066, which had banned the import of Russian oil and petroleum products into the US.

“I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,” the order states.

Under the new directive:

• A 25% additional duty will be imposed on Indian goods entering the US, raising the total tariff to 50%.

• The new rate becomes effective 21 days from the order’s signing, with exceptions for in-transit goods loaded before that deadline.

• The measure is justified as part of US efforts to address “an unusual and extraordinary threat” posed by Russia’s actions in Ukraine.

India Calls Move “Unfair and Unjustified”

India has strongly objected to the tariff hike. The Ministry of External Affairs (MEA), in a statement earlier this week, criticised the US and European Union for what it called “unjustified and unreasonable” targeting of New Delhi over its trade and energy ties.

“India’s energy purchases are in line with its national interest and global energy security. The imposition of additional tariffs is neither fair nor proportionate,” said an MEA spokesperson.

New Delhi also pointed to the ongoing US-EU trade with Russia, arguing that India was being selectively penalised despite others continuing economic engagement with Moscow.

The move is expected to strain trade relations between the two countries, with Indian exporters warning of major disruptions across sectors affected by the steep tariff hike.