US raises tariffs on India to 50%
WASHINGTON—President Donald Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India for its purchases of Russian oil, bringing the combined tariffs imposed by the United States on its ally to 50 percent.
The tariffs would go into effect 21 days after the signing of the order, meaning that both India and Russia might have time to negotiate with the administration on the import taxes.
Trump’s moves could scramble the economic trajectory of India, which until recently was seen as an alternative to China by American companies looking to relocate their manufacturing. China also buys oil from Russia, but it was not included in the order signed by the Republican president.
Lower taxes on China
As part of a negotiating period with Beijing, Trump has placed 30 percent tariffs on goods from China, a rate that is smaller than the combined import taxes with which he has threatened New Delhi.
Trump had previewed for reporters on Tuesday that the tariffs would be coming. During an event in the Oval Office on Wednesday with Apple CEO Tim Cook, Trump affirmed the 50 percent tariff number, not giving a specific answer as to whether additional tariffs on India would be dropped if there were a deal between Russia and Ukraine.
‘Unfortunate’
“We’ll determine that later,” Trump said. “But right now they’re paying a 50 percent tariff.”
The Indian government on Wednesday called the additional tariffs “unfortunate.”
“We reiterate that these actions are unfair, unjustified and unreasonable,” Foreign Ministry spokesperson Randhir Jaiswal said in a statement, adding that India would take all actions necessary to protect its interests.
Jaiswal said India has already made its stand clear that the country’s imports were based on market factors and were part of an overall objective of ensuring energy security for its 1.4 billion people.
Ajay Srivastava, a former Indian trade official, said the latest tariff places the country among the most heavily taxed US trading partners and far above rivals such as China, Vietnam and Bangladesh.
‘Leverage’
“The tariffs are expected to make Indian goods far costlier with the potential to cut exports by around 40 percent-50 percent to the US,” he said.
Srivastava said Trump’s decision was “hypocritical” because China bought more Russian oil than India did last year.
“Washington avoids targeting Beijing because of China’s leverage over critical minerals which are vital for US defense and technology,” he said.
In 2024, the United States ran a $45.8-billion trade deficit in goods with India, meaning America imported more from India than it exported, according to the US Census Bureau. American consumers and businesses buy pharmaceutical drugs, precious stones and textiles and apparel from India, among other goods.
