In a sharp escalation of trade tensions, the United States has announced a 50% tariff on Indian imports, citing concerns over India’s continued purchase of Russian crude oil. The decision, made through an executive order by President Donald Trump, doubles the previous 25% duty and places India among the highest-tariffed nations in U.S. trade policy.
The White House stated that India’s indirect support of Russia through energy imports poses a threat to national security and undermines sanctions imposed on Moscow. The new tariffs are scheduled to take effect on August 27, with a grace period allowing shipments made before September 17 to enter under the old rates. The administration has left a 21-day window open for negotiations, though no formal talks have been announced.
India’s apparel industry is expected to be hit particularly hard. The Apparel Export Promotion Council (AEPC) expressed deep concern, noting that the U.S. accounts for roughly one-third of India’s garment exports. AEPC Chairman Sudhir Sekhri called the move “unreasonable” and urged the Indian government to provide financial support to affected exporters.
This tariff hike places India alongside Brazil, both now facing 50% duties. Other countries on the U.S. tariff list include Syria (41%), Laos and Myanmar (40%), and China (30%). Analysts warn that the move could strain global supply chains and push India toward closer ties with Russia and China, both of whom are also facing increased U.S. trade pressure.
India’s Ministry of External Affairs has condemned the decision, calling it unfair and questioning why other nations importing Russian oil have not faced similar penalties. With Prime Minister Narendra Modi expected to attend the Shanghai Cooperation Organisation (SCO) Summit in China later this month, diplomatic tensions are likely to rise as India weighs its next steps.