
US Imposes Steep Tariffs on Indian Goods
US President Donald Trump has announced a doubling of import tariffs on Indian goods from 25% to 50%, effective August 27, 2025. The decision targets India's continued import of Russian oil, which Trump claims supports Russia's war economy amid the Ukraine conflict.
Geopolitical Tensions Escalate
Trump justified the move on social media, stating: "They buy most military equipment from Russia and are the largest energy purchaser with China." This comes as India sourced approximately one-third of its oil imports from Russia in 2024, despite EU sanctions.
Deteriorating US-India Relations
Correspondent Devi Boerema notes the tariff hike follows cooling relations between Trump and Indian Prime Minister Modi. Tensions escalated after the Kashmir conflict, where Modi rejected Trump's mediation offer. Trump has repeatedly criticized India's protective tariffs on US agricultural products like dairy and grain.
Economic Impact and Exemptions
India now faces the highest US tariff rate alongside Brazil. This significantly impacts India's economy as the US is its largest export market ($87B in 2024). Certain products including pharmaceuticals and smartphones remain exempt. The 21-day implementation window leaves room for negotiations.