President Trump imposes an additional 25% tariff on Indian imports over Russian oil trade

In a sharp escalation of trade pressure, US President Donald Trump has signed an executive order imposing a 25% additional ad valorem duty on a broad range of Indian goods, citing India’s continued import of Russian oil in defiance of American sanctions. This brings the total effective rate on many items to 50%, which is now in line with Brazil.The move, effective from August 27, 2025, affects a wide range of Indian exports, including textiles, automobiles, and jewelry. It is pertinent to note that the earlier 25% tariffs will come into effect from August 7. Trump’s executive order, however, exempts pharmaceuticals and semiconductors under Section 232 of the Trade Expansion Act, 1962. Goods already in transit before the deadline are also excluded.

“I find that the Government of India is currently directly or indirectly importing oil from the Russian Federation,” the order states. The move invokes the International Emergency Economic Powers Act and National Emergencies Act, with the tariffs set to take effect 21 days from now, which is August 27, 2025.

The Trump executive order, however, leaves room for future changes. It may be modified if India retaliates with its own trade measures or if it takes significant steps to sufficiently align with US interests.

NEW: President Donald J. Trump just signed an Executive Order imposing an additional 25% tariff on India in response to its continued purchase of Russian oil.

Here is the text of the Order:By the authority vested in me as President by the Constitution and the laws of the…

— Rapid Response 47 (@RapidResponse47) August 6, 2025

Russia continued to be the top oil supplier to India during the first six months of 2025, making up 35% of overall supplies, according to a Reuters report. The United States, the world’s largest economy, currently has a $45.7 billion trade deficit with India, the fifth largest, the report added.

Meanwhile, India and Russia have signed a protocol to deepen cooperation in Aluminium, fertilisers, railways, and mining technology at the 11th session of the India-Russia Working Group on Modernisation & Industrial Cooperation.