Trump doubles tariffs on Indian imports to 50%

August 07, 2025 (MLN): U.S. President Donald Trump has doubled tariffs on Indian imports to 50%, penalizing the South Asian nation for its continued purchases of Russian oil.

The move, signed through an executive order on Wednesday, adds a fresh 25% levy on top of the 25% announced last week.

The new tariffs will take effect within 21 days, allowing time for potential negotiations, as Bloomberg reported.

India swiftly condemned the decision. Prime Minister Narendra Modi’s government defended the oil imports as vital for national energy security and criticized the U.S. for singling out India while others continue buying Russian oil.

“These actions are unfair, unjustified and unreasonable,” said the Ministry of External Affairs, vowing to protect national interests.

Opposition leader Rahul Gandhi called Trump a “bully,” labeling the tariffs as economic blackmail.

Trump has also given Russian President Vladimir Putin an August 8 deadline to agree to a ceasefire in Ukraine or face further sanctions.

While recent U.S.-Russia talks yielded no breakthrough, Trump expressed optimism about an upcoming meeting with both Putin and Ukrainian President Volodymyr Zelenskiy.

Markets reacted calmly. Oil edged higher after a five-day decline, while the iShares MSCI India ETF fell 0.3% in U.S. trading.

One-month forwards on the dollar-rupee held steady at around 87.9 in offshore markets.

However, the damage to U.S.-India ties may be lasting.

Trump has previously attacked India’s economy and trade barriers and now faces backlash across India’s political spectrum.

Bloomberg Economics estimates the 50% tariff could cut India’s U.S.-bound exports by 60%, threatening 0.9% of GDP and hitting sectors like textiles, gems, footwear, and agriculture.

Analysts suggest Trump’s move is more about pressuring India in trade talks than punishing Russia, especially as countries like China have avoided similar penalties.

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

India’s pharmaceutical exports, worth over $10.5 billion in 2024–25, could also be affected, with duties on drugs potentially impacting over 40% of its U.S. shipments.

Indian exporters, already facing delayed orders, fear losing long-term clients. The Federation of Indian Export Organisations called the development a “severe setback.”

Despite mounting pressure, Modi has avoided direct criticism of Trump but has emphasized self-reliance.

Meanwhile, opposition leaders have urged reciprocal tariffs and a shift toward alternative trading partners.

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