U.S. President Donald Trump has signed an executive order enacting an additional 25% tariff on Indian goods, explicitly targeting India’s ongoing imports of Russian crude oil. This order increases the total tariff rate on Indian exports to the United States to 50%, the highest level for any country under current U.S. policy.
According to the executive order (effective 21 days after signing, beginning at 12:01?a.m. ET), duties will apply to goods entered for consumption or withdrawn from warehouses on or after that time.
In an accompanying White House statement, which represents Washington’s latest change of heart vis-a-vis Russia versus Ukraine, the administration claimed that Russia’s actions in Ukraine “pose an ongoing threat to U.S. national security and foreign policy,” and that India’s oil imports “undermine U.S. efforts to counter Russia’s harmful activities.”
Trump had earlier opined that the powers in New Delhi “don’t care how many people in Ukraine are being killed by the Russian War Machine,” making the new tariffs a response to energy-related trade linked to the conflict.
India’s Foreign Ministry swiftly condemned the order. Spokesperson Randhir Jaiswal called the measures “unjustified and unreasonable,” noting that India turned to Russian crude only after traditional suppliers diverted barrels to Europe during the 2022 conflict. The ministry reiterated that global energy markets’ stability had required flexibility.
Analysts warn the higher duties may further strain Indian exports, especially in labor-intensive sectors like textiles, gems, electronics, and petrochemicals, collectively valued at up to $64?billion annually. That could lead to slower GDP growth and investment hesitancy.
Meanwhile, the U.S. has signed a new energy and trade cooperation deal with Pakistan, signaling another jab at India earlier this week. In remarks made during the announcement, Trump praised Pakistan’s untapped oil reserves and suggested that “maybe they’ll be selling oil to India someday.”
By Charles Kennedy for Oilprice.com
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