Collateral Damage: US Hits India with 25% Tariff over Ties to Russia
In a sharp escalation of economic pressure, US President Donald Trump has signed an executive order imposing a 25% tariff on Indian goods in response to New Delhi’s continued oil imports from Russia. This marks Washington’s first official move to penalize a third country for its energy cooperation with Moscow.
This was reported by the White House press service.
The White House has issued an executive order from President Donald Trump imposing an additional 25% tariff on all goods imported into the United States from India, citing India’s continued direct and indirect purchases of Russian oil.
According to the order, Indian authorities have maintained energy ties with the Russian Federation — a move Trump says contradicts U.S. national interests and undermines Washington’s strategy of exerting pressure on the Kremlin.
The order is set to take effect 21 days after publication, meaning the new tariffs will be enforced by the end of August. This transition period is intended to give American businesses time to adapt to the new economic conditions and seek alternative suppliers or markets.
In addition to targeting India, the executive order directs the U.S. Secretary of Commerce to assess whether other countries are importing Russian oil. If such imports are confirmed, the Secretary of State may, after consultation with the President, impose similar restrictions on those countries.
With this step, the United States is launching a new wave of economic pressure aimed not only at Russia but also at states that bypass Western sanctions by purchasing Russian energy resources.
Trump’s decision is likely to have significant implications for U.S.-India trade relations and could deal a blow to the Indian economy, which exports billions of dollars’ worth of goods to the United States, from pharmaceuticals and textiles to information technology. It also sends a clear signal to other Global South nations that continue to engage economically with Russia: Washington is prepared to take unilateral action to further isolate the Kremlin on the international stage.
Earlier, US President Donald Trump announced his intention to significantly increase tariffs on imports from India due to its cooperation with Russia in the energy sector.
The day before, US President Donald Trump changed his approach to India policy to put more pressure on Vladimir Putin to stop the war against Ukraine.
As a reminder, US President Donald Trump announced the introduction of new tariffs for India: from August 1, the country will have to pay 25%. He explained that India buys most of its military equipment from Russia and, together with China, is one of the largest consumers of Russian energy.
It is worth adding that US Treasury Secretary Scott Bessant confirmed that Washington will continue to impose sanctions to limit Russia’s energy export revenues . According to him, the Treasury Department will “ensure full implementation of the restrictions” aimed at the financial sources of the aggressor state.
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