Trump doubles tariffs on Indian imports to 50%

August 07, 2025 (MLN): U.S. President Donald Trump has escalated India-U.S. trade tensions (August 2025) by imposing punitive tariffs on India over Russian oil purchases.

Through an executive order, Trump doubled the levy on Indian goods to 50%, adding a fresh 25% on top of the earlier announced tariff.

The move, which takes effect in 21 days, drew immediate condemnation from New Delhi.

Prime Minister Narendra Modi’s government defended its energy policy and criticized the U.S. for singling out India, while continuing to overlook similar actions by other nations.

The Ministry of External Affairs called the decision “unfair, unjustified, and unreasonable.”

Opposition leaders went further, with Rahul Gandhi branding Trump a “bully” and calling the tariffs “economic blackmail.”

Analysts believe the decision is more about gaining leverage in trade negotiations than punishing India’s oil purchases.

The impact of Trump tariffs on Indian exports could be significant Bloomberg Economics estimates a potential 60% drop in exports to the U.S., threatening nearly 0.9% of India’s GDP.

Sectors like textiles, gems, footwear, agriculture, and especially pharmaceuticals (with $10.5bn in exports) could be among the hardest hit.

Amid the backlash, markets remained relatively stable. Oil prices edged higher, and the dollar-rupee forwards held steady. But Trump’s 50% tariff on Indian imports could mark a lasting shift in bilateral trade relations.

Modi is reportedly planning a visit to China later this month his first in over seven years amid rising pressure from Washington.

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