The New Tariff Brings the Total Duty on Indian Goods to a Staggering 50%, as New Delhi Fires Back, Labeling the Action “Unjustified and Unreasonable.”
Washington, DC – August 7, 2025: Tensions between the United States and India have escalated dramatically, with President Donald Trump signing an Executive Order to impose an additional 25% tariff on imports from India. This bold move, which comes amid a deepening diplomatic rift, effectively doubles the total duty on Indian goods to a staggering 50%. The order cites national security concerns, claiming India’s growing purchases of Russian oil pose an “unusual and extraordinary threat” to the United States.
The US Accusation: ‘Taking Advantage’ of the War
In a direct and pointed statement, a senior US Administration Official did not mince words, accusing India of deliberately benefiting from the war in Ukraine. “There is simply no comparison between the hundreds of billions of dollars of growing Indian imports of Russian oil, and the modest U.S. imports of Russia goods,” the official said, noting that US imports amount to less than 1% of India’s.
The official charged that while the US’s limited imports from Russia are for commodities with no current alternatives, India has “intentionally taken advantage of the war in Ukraine to dramatically increase its purchases of Russian crude, when there are roughly 40 major crude providers that could satisfy Indian demand.”
India’s Rebuttal: ‘Unjustified and Unreasonable’
But India was quick to fire back. The Ministry of External Affairs (MEA) released a strong-worded official statement, labeling the US’s actions as “unfair, unjustified and unreasonable.” New Delhi reaffirmed that its oil imports are based on vital “market factors” and are driven by the overarching objective of ensuring the energy security of its 1.4 billion people.
The MEA statement also called out what it perceives as hypocrisy, pointing out that it is “extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.” The statement ended with a defiant message: “India will take all actions necessary to protect its national interests.”
The Tariffs: What Happens Next?
The new 25% levy, which will be imposed on all Indian goods imported into the US (with some limited exceptions), will come into effect after 21 days. This is in addition to the initial duty that went into effect on August 7, bringing the total to 50% and sparking fears of a full-blown trade war between the two nations.