US President Donald Trump answers questions from reporters on August 5, 2025 in Washington. | Photo Credit: AP
US President Donald Trump on Wednesday (August 6, 2025) signed an executive order that imposed another 25% tariff on imports from India, in response to India “directly or indirectly” imports of oil from Russia. This is above and above 25% tariff on Indian imports, which Mr. Trump approved on July 31.
While the initial 25% of the tariff comes into force from Thursday (August 7, 2025), another 25% of the tariff will enter into force after 21 days.
The Ministry of External Affairs (MEA) responded to this latest development and stated that it clarified its attitude – through an earlier statement after the threat of Mr. Trump – these actions were “unfair, incomprehensible and disproportionate”. It was “extremely unfortunate” that the US chose this procedure, Mea said.
Data | Criticism of India Donald Trump for Oil trade and weapons with Russia is factual but illogical
“Punishment” for importing Russian oil
“To deal with the national emergency situation described in the executive regulation 14066 (concerning Russian events in Ukraine), I determine that it is necessary to impose another obligation for the imports of Indian articles that directly or indirectly import Russian federation oil,” said Mr. Trump.
“In accordance with this and in accordance with applicable rights, Indian articles imported on the customs territory of the United States are subjected to a further extent of the CLA Ad Valor in the amount of 25%,” she added.
Over the past few days, Mr. Trump has repeatedly threatened other tariffs in India as a “fine” for importing oil from Russia.
Also read | I never said a percentage: trump on growing tariffs on countries buying Russian energy
“Unjust, unjustified, disproportionate”
In response to one such threat of Mea 4. August pointed out that not only the US supported such trade before, the European Union and the US actively trade with other items with Russia beyond the amount that India pays for Russian oil.
“We have already clarified our position on these issues, including the fact that our imports are based on market factors and carried out with an overall goal to ensure energy security of 1.4 billion people in India,” MEA said. “Therefore, it is extremely unfortunate that the US would decide to save other tariffs in India for events that several other countries also accept in their own interest.”
“We repeat that these actions are unfair, unfounded and disproportionate,” Mea added. “India will take all the steps necessary to protect their national interests.”
Trump’s 25% of tariffs: would India be better without a hurried business agreement?
“Competitive disadvantage”
This latest escalation by Mr. Trump is a “serious failure” for Indian exports, said SC Ralhan, President of the Federation of Indian Export Organizations, noting that nearly 55% of Indian exports to the US market would be directly affected.
“50% of the reciprocal tariff effectively imposes cost load and place our exporter on 30% to 35% of a competitive disadvantage compared to peers from countries with a lower tariff,” added Mr. Ralhan.
Negotiators from the US and India are currently dealing with the completion of the first trancho of the bilateral trade agreement (BTA) this autumn. It is expected that another physical meeting between the two parties will begin on August 25 in Nový Delhi.
“Talking with Threats”
“India should remain calm, avoid retaliation for at least six months, and acknowledge that meaningful business negotiations with the US cannot proceed under threats or distrust,” said Ajay Srivastava, founder of the initiative for global business research and former CEO of foreign trade.
He added that India could consider stopping Russian oil purchases only if it was economically viable and not under pressure from Washington.
Published – 6. August 2025 17:46
