President Donald Trump has issued an executive order that imposes an additional 25% tariff on goods from India as a fine for importing Russian oil.
Wednesday’s hike is one of the highest import tax ranges in the US based on Trump, plus 50% total, along with the 25% tariffs India already faces.
In his executive order, Trump explained that increasing tariffs on India, the leading consumer of petroleum products, is “necessary and appropriate” as Russia’s continued military action in Ukraine constitutes a “national emergency.”
“We now find that the Indian government is importing oil directly or indirectly from the Russian Federation,” Trump wrote.
“The actions and policies of the Russian Federation government continue to pose an extraordinary and extraordinary threat to the US national security and foreign policy.”
The increase in tariffs is expected to come into effect 21 days after the announcement, leaving the window open for India and the US to negotiate a lower rate.
However, the move could further complicate US-India relations. Brazil is the only country facing a total tariff rate of 50%.
India’s Foreign Ministry responded swiftly to Trump’s executive order in a statement, denounced tariffs as “unfair, unfair and unreasonable.”
I wondered why India was punished for additional tariffs, whereas other importers of Russian oil did not.
“We have already made clear our position on these issues, including the fact that imports are based on market factors and are being made with the overall purpose of ensuring energy security for India’s 1.4 billion people,” the government’s statement said.
“It is therefore very unfortunate that the US should choose to impose additional tariffs on India for actions in which several other countries receive their own interests.”
Tensed US-India relations
India and the US were engaged in five rounds of trade talks in a lead-up to the announcement on Wednesday. In April, US Vice President JD Vance traveled to New Delhi to help with negotiations.
However, months of hugging has failed to create a trade deal, and experts say the US-India bond is currently facing the most serious crisis over the years.
Experts point out that India’s struggle to solidify the deal with Trump is in contrast to the situation in Pakistan, which was negotiated with the lower tariff rates in July.
Wednesday’s announcement coincides with reports that Indian Prime Minister Narendra Modi will be visiting China for the first time in more than seven years this month.
A source from the Indian government told news agency Reuters that Modi will be attending the security summit in Tianjin. Russian officials will also be present.
Until recently, Trump and Modi’s relationship was considered very tight.
Modi was one of the first foreign leaders to visit Trump after the Republican leader took office in a second term in January. During Trump’s first term in 2019, the president held a dedicated Texas rally for the Indian Prime Minister, calling the event “Houdi Modi”.
Modi, on his side, embraced Trump’s “American Great Again” movement, offering his own spin with his slogan.
However, Trump was open to his belief that India’s economic practices are unfair to the US, and he has pledged to reduce the trade deficit with his foreign trading partners.
According to US government trade statistics, India exported nearly $87.3 billion in goods and services to the US in 2024 to the US, and warned US exports to India, totaling $41.5 billion.
The relationship is further strained by Trump’s claim that he mediated peace between India and Pakistan after an armed standoff in May. Modi denied such foreign involvement.
Pressure to end the Ukrainian War
Trump is also increasingly unhappy with Russia despite his previous warm relations with the country’s president, Vladimir Putin.
Upon his second term, Trump positioned himself as a “peace manager.” He had previously promised to end the war between Russia and Ukraine within 24 hours.
However, Trump has made progress in peace talks between the two countries. However, with no ceasefire in sight, Trump announced the deadline for Russia to close its military campaign in July.
Russia first launched a full-scale invasion of Ukraine in February 2022, and then the war became a costly, slowly crushed conflict.
In an executive order on Wednesday, Trump kept the possibility that other importers of Russian petroleum products could be subject to higher tariffs, as India had.
He also reserved the right to “modify” the executive order if retaliation measures are taken or if a country like India “takes important measures” in line with the US policy goals.
The tariff announcement was aimed at urging Russia to agree to Ukraine’s peace, following a meeting photographed by Steve Witkov, Trump’s diplomatic mission in Moscow.
India’s national security adviser Ajit Doval was likewise in Russia, but Reuters reported that he was debating pressures to end the purchase of petrol in India.
While hosting Apple CEO Tim Cook in his oval office, Trump was asked whether a breakthrough at a ceasefire meeting with Russia would urge him to drop tariffs on India.
Trump mostly dodged questions. “We’ll decide on that later, but now we’re paying 50% tariffs,” he replied.
Why target India?
From outside the White House, Al Jazeera correspondent Kimberly Halkett pointed out that other countries outside India continue to import Russian petroleum products, but lacked Trump’s executive order.
China, for example, remains the top buyer of Russian oil, and Turkiye is its third largest consumer.
“We have a list of countries that buy Russian oil. India’s second and China is the first,” explained Halkett.
“The US, even the European Union, buys from Russia itself. They buy fertilizer. So what about India? India buys it from Russia at a very sudden discount. This oil and gas.
But Halkett explained that Trump officials recognize that particular trade as a threat to U.S. national security.
“They view this as a threat to US interests, because it directly funds Russian war machinery, just as the US is trying to end Russia’s invasion of Ukraine,” Halkett said.
“So, this is against the interests of the US in the eyes of the US, and India is the biggest criminal in their eyes at this point.”
In the oval office on Wednesday, Trump himself was faced with questions about whether the situation amounted to a double standard for India. One reporter asked: Why are you making India single due to these additional tariffs?
Trump declined to question. “It was only eight hours. Let’s see what happens.”
