U.S. Imposes 25% Tariff on India Amid Oil Purchase Controversy

In a recent executive order, President Trump has announced a 25% tariff on Indian imports of Russian oil, raising the total tariff rate to 50%. The measure reflects U.S. efforts to counter any financial support to Russia amid its ongoing conflict with Ukraine, leading to tensions between the U.S. and India, who argues the tariffs are unjustified.

In a bold move, U.S. President Donald Trump signed an executive order on Wednesday imposing an additional 25% tariff on India's imports of Russian oil. This new measure will elevate the total tariff rate for Indian imports into the United States to an unprecedented 50%, making it one of the highest tariff rates enforced by the U.S. government.

The executive order specifies that the new tariff rate will come into effect for goods entering or withdrawn for consumption beginning at 12:01 a.m. eastern daylight time, exactly 21 days after the order is issued. Trump's previous statements indicated a looming increase in levies on India, stating that the country "doesn't care how many people in Ukraine are being killed by the Russian War Machine."

The U.S. government asserts that the Russian actions in Ukraine present a persistent threat to national security, necessitating stronger interventions. In its official statement, the White House indicated that India's oil imports "undermine U.S. efforts to counter Russia's aggressive activities." The administration believes that as India continues to resell Russian oil on the global market, it effectively sustains the Russian economy, thereby funding its military aggression in Ukraine.

The announcement of the increased tariffs follows diplomatic efforts by Trump's envoy, Steve Witkoff, in Moscow, aimed at negotiating peace between Russia and Ukraine. India's reaction has been one of defiance, calling the U.S. threat to raise tariffs "unjustified and unreasonable."

Indian Foreign Ministry spokesperson Randhir Jaiswal highlighted that the U.S. had previously encouraged India to import Russian gas to stabilize global energy markets following the outbreak of the Ukraine conflict—when traditional supply routes were redirected towards Europe. India has recently taken the step to import Russian oil to safeguard its energy security, given the changed global supply dynamics.

India also criticized the U.S. for imposing the tariffs while it continues to engage in trade with Russia. Even amidst tough sanctions and tariffs, the U.S. had traded approximately $3.5 billion worth of goods with Russia last year. The Indian government emphasized the necessity to protect its national interests and economic stability, asserting that it will not yield to external pressure in its economic policies.