US President Donald Trump imposes Extra 25% Tariff On India Over Russian Oil, Total Levy 50%

US President Donald Trump has imposed an additional 25% tariff on India due to its purchase of Russian oil, raising the total tariff to 50%. This decision follows Trump's statement that India has not been a favourable trading partner. He announced plans to increase tariffs on New Delhi significantly within 24 hours because of its dealings with Russia.

Trump expressed dissatisfaction with India's trade practices, stating, "With India, what people don't like to say about India, they're the highest tariff nation. They have the highest tariff of anybody. We do very, very little business with India because their tariffs are so high." He added that India's actions in buying Russian oil contribute to fuelling conflict.

India's Response and Criticism

In response, India criticised the US and EU for their "unjustified and unreasonable" focus on New Delhi's procurement of Russian crude oil. The Ministry of External Affairs highlighted the double standards, noting that both the US and EU continue trading with Russia. They emphasised that such trade is not a vital national necessity for them.

White House Deputy Chief of Staff Stephen Miller reiterated Trump's stance in an interview with Fox News Sunday. He stated that it is unacceptable for India to finance the Ukraine war by purchasing oil from Russia. This reflects the administration's firm position against India's current trade practices.

Trade Deal Sticking Points

The potential trade deal between the US and India faces hurdles due to high Indian tariffs. Trump mentioned that although India might reduce tariffs to zero, this isn't sufficient given their ongoing oil transactions with Russia. The situation remains tense as both countries navigate these complex trade dynamics.

Previously, Trump had announced a 25% tariff on Indian imports alongside an unspecified penalty for India's acquisition of Russian military equipment and crude oil. His recent remarks also criticised the close ties between India and Russia, suggesting their economies could falter together.

Despite these tensions, New Delhi defended its economic growth status by asserting itself as the world's fastest-growing major economy. This statement came after Trump's comments about India's economic relationship with Russia.

The unfolding situation highlights significant challenges in US-India relations amid global geopolitical tensions involving Russia. Both nations must address these issues while considering broader international implications.

A new import duty structure is on the way, and here's how it will roll out.

First, there are two key dates to keep in mind:

August 7, 2025: This is when the base duty kicks in.

21 days after the order date: That's when an additional levy will be applied. Specifically, it affects any goods that are used or taken out of storage after 9:31 am IST today.

But don't worry - there are a couple of important exceptions to this new, higher duty.

Who's Exempt from the Higher Duty?

Goods already on the way to the U.S.

If your shipment was loaded onto a vessel and set sail before 12:01 am IST on August 7, it won't be affected by the extra charge.

Goods cleared for consumption early

If the goods are officially entered for consumption before 12:01 am IST on September 17, 2025, they're also in the clear.

So, if you're an importer or trader, check your shipping dates and customs documentation carefully - timing will make all the difference when it comes to your duty bill.