Josh Boak, Rajesh Roy, Fatima Hussein, Associated Press
WASHINGTON (AP) – President Donald Trump signed an executive order on Wednesday, placing an additional 25% tariff on India to buy Russian oil, bringing the total tariff imposed by the allies to 50%.
The customs duties will come into effect 21 days after the order is signed. In other words, both India and Russia may have time to negotiate with the government on import taxes.
Trump’s move could have fought for India’s economic trajectory. Until recently, India was considered a Chinese alternative by American companies considering relocating manufacturing. China also purchases oil from Russia, but it is not included in the order signed by the Republican president.
As part of the negotiations with Beijing, Trump has placed a 30% tariff on goods from China.
Trump previewed for the reporter on Tuesday, but said the US met with Russia on Wednesday as the Trump administration is about to end the war in Ukraine.
“We’re going to see what happens,” Trump said of his tariff plans. “At the time, we made that decision.”
The Indian government on Wednesday called the additional tariffs “unfortunate”.
“We repeat that these actions are unfair, unfair, irrational and unreasonable,” Foreign Ministry spokesman Randil Jaiswal said in a statement, adding that India will take all necessary actions to protect its interests.
Jaiswal said India has already made clear that the country’s imports are based on market factors and is part of its overall objective of ensuring energy security for 1.4 billion people.
Former Indian trade officer Ajay Srivastava said the latest tariffs far outweigh the US trading partners, which are the country’s most taxable, and rivals such as China, Vietnam and Bangladesh.
“Duty tariffs are expected to cost much more, as Indian goods could reduce exports to the US by about 40-50%,” he said.
Srivastava said Trump’s decision was “hypocritical” as China bought more Russian oil than India last year.
“Washington is avoiding targeting Beijing due to China’s leverage on key minerals essential to US defense and technology,” he said.
In 2024, the US operated a $45.8 billion trade deficit on goods with India. That is, according to the US Census Bureau, the US was imported from India more than exports. American consumers and businesses buy medicines, valuable stones, textiles and apparel from India, among other products.
In the world’s largest country, India represents the way the US counters China’s influence in Asia. But despite the Indian leaders claiming they want peace, India does not support Ukraine-related sanctions by the US and its allies.
The US and China are currently negotiating trade, with Washington placing a 30% tariff on Chinese products and facing a 10% retaliation tax from Beijing on American products.
The planned tariffs on India contradict past efforts in the Biden administration and other countries, a group of seven major developed countries that encouraged India to purchase cheap Russian oil through the price cap imposed in 2022.
The intention was to rob the Kremlin of revenue to fund the war in Ukraine, selling oil at a discount to the Russian government or diverting money for costly alternative transport networks.
The price cap was deployed in parts that equaled skepticism and hope that the policy would control Russia’s Ukrainian invasion.
The cap required transport companies and insurance companies to refuse to process oil cargo above the cap, but Russia was able to bypass the cap by using insurers and trading companies in countries that have not enforced sanctions to ship oil to the “shadow fleet” of old ships.
However, barrel trading was $65.84 on Wednesday morning, bringing oil prices down 1% that day.
Roy reported from New Delhi.
Original issue: August 6, 2025, 10:37am EDT
