WASHINGTON. U.S. President Donald Trump has signed an executive order imposing an additional 25 percent tariff on India for its continued purchase of Russian oil, raising the total import tax to 50 percent. The order, signed Wednesday, will take effect in 21 days, potentially giving both India and Russia time to enter negotiations with the Trump administration.
The move is expected to have a significant impact on India’s economy and its trade relationship with the United States. Trump’s decision to target India, while sparing China despite its larger purchases of Russian oil, marks a shift in U.S. trade policy that could realign global economic strategies.
India had been considered a strategic alternative to China by U.S. companies seeking to relocate their manufacturing operations. However, the newly announced tariffs place India among the most heavily taxed U.S. trading partners, surpassing even China, which currently faces a 30 percent tariff under ongoing trade negotiations.
In a press event held in the Oval Office with Apple CEO Tim Cook, Trump confirmed the 50 percent tariff rate but declined to say whether the policy would change if Russia and Ukraine reached a peace agreement. The White House also stated that Trump could meet with Russian President Vladimir Putin as early as next week to discuss ending the war in Ukraine.
India’s Foreign Ministry called the tariffs “unfortunate” and “unjustified,” vowing to protect the country’s economic interests. Spokesman Randhir Jaiswal said India’s oil imports are driven by market conditions and are part of its strategy to secure affordable energy for its 1.4 billion citizens.
Ajay Srivastava, a former Indian trade official, warned that the increased tariffs could reduce Indian exports to the U.S. by 40 to 50 percent. He criticized the U.S. for sparing China despite its larger oil imports from Russia, citing China’s leverage in supplying critical minerals essential for U.S. defense and technology.
“The decision is hypocritical,” Srivastava said. “Washington avoids targeting Beijing because of China’s strategic importance.”
According to the U.S. Census Bureau, the United States recorded a $45.8 billion trade deficit in goods with India in 2024, importing pharmaceuticals, textiles, precious stones, and other products.
While India has maintained a neutral stance on the Russia-Ukraine war and has resisted joining Western sanctions against Moscow, it has stated support for peace efforts. The new tariffs also contradict earlier efforts by the Biden administration and G7 nations, which encouraged India to buy Russian oil under a 2022 price cap set at $60 per barrel to restrict Kremlin war funding.
Despite those efforts, Russia has largely bypassed the cap through a fleet of older ships and insurance arrangements in non-participating countries, continuing to sell oil above the cap without facing significant penalties.
With the new executive order in place, India’s future trade position with the United States is likely to be challenged as global powers recalibrate alliances and economic strategies.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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