WASHINGTON — The Trump administration on Wednesday announced a dramatic escalation of its trade battle with India, unveiling a combined 50% tariff on goods imported from one of America’s most important trading partners. The move penalizes New Delhi for what the White House calls its role in fueling Moscow’s war machine by importing Russian oil.
The executive order imposes two separate levies. The first is a 25% tariff set to go into effect Thursday. It will be followed by an additional 25% tariff later this month, which President Donald Trump described as a direct punishment for India’s energy trade with Russia.
This second tariff represents the administration’s first use of “secondary sanctions” against a country for doing business with Moscow amid the war in Ukraine. According to a document on the White House website, the order finds that India is “currently directly or indirectly importing Russian Federation oil,” making the new duties “necessary and appropriate.”
The announcement came just hours after Trump’s foreign envoy, Steve Witkoff, concluded a meeting in Moscow with Russian President Vladimir Putin.
In a social media post earlier this week, Trump accused India of profiting from the conflict. “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” he wrote. “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”
India’s Ministry of External Affairs issued a sharp response, defending its energy policy and hinting at retaliation.
“Our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India,” the ministry said in a statement. “It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”
The statement concluded by warning that “India will take all actions necessary to protect its national interests.”
Economic Impact and Key Exemptions
The 50% tariff rate is among the highest the U.S. imposes on any trading partner. The U.S. trade relationship with India, the world’s fifth-largest economy, has grown significantly in recent years. As the U.S. increased tariffs on China, many American businesses, including Apple, shifted production to India.
In 2023, the U.S. imported $87 billion worth of goods from India while exporting $42 billion to the country. The top imports from India include pharmaceuticals, communications equipment, and apparel.
However, in a significant exemption, smartphones will not be subject to either tariff. This protects Apple’s India-made iPhones from the new duties. Trump has separately threatened across-the-board tariffs on pharmaceuticals, but those would not be stacked on top of the new 50% levy.
If India follows through with retaliatory tariffs, key American export industries—including oil and gas, chemicals, and aerospace products—could face significant financial pressure.
