President Donald Trump’s new 50 percent tariff on Indian imports took effect at midnight on August 27. It marks one of the toughest trade measures imposed by his administration to date.
The White House announced the move as part of a broader effort to penalize India. The decision came in response to India continuing to buy discounted oil from Russia.
In an executive order issued on August 6, Trump said the Indian government is “currently directly or indirectly importing Russian Federation oil.” He argued these purchases are helping fund Russia’s war in Ukraine.
India has become one of Russia’s biggest energy customers since the invasion of Ukraine in 2022. Last year alone, India imported over $52 billion worth of crude oil from Russia. That accounts for roughly one-third of Moscow’s total oil exports.
The surge has been driven by steep discounts on Russian crude. India has used those shipments to replace more expensive oil from the U.S., South America, and Africa.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote in a Truth Social post. He accused India of reselling Russian crude for profit on the open market.
White House trade adviser Peter Navarro backed the president’s stance. He said India’s purchases directly harm both the U.S. economy and global security.
“We run a massive trade deficit with them,” Navarro said. “Then they use the money that they get from us when they sell us stuff to buy Russian oil. That oil is then processed by refiners, and they make a bunch of money there. But then the Russians use the money to build more arms and kill Ukrainians.”
The U.S. goods trade deficit with India reached nearly $46 billion in 2024. That was a 5.9 percent increase from the previous year, according to the U.S. Trade Representative’s Office.
The new tariffs bring the total duty on many Indian goods to 50 percent. Trump had initially imposed a 25 percent tariff in April. That figure was revised slightly and then doubled this month in response to India’s ongoing energy and military ties with Russia.
India’s government says these purchases are necessary to meet the needs of its nearly 1.5 billion people. “In this background, the targeting of India is unjustified and unreasonable,” a spokesperson for the Indian Foreign Ministry told The Epoch Times.
The impact on India’s export-driven industries is expected to be severe. About two-thirds of Indian exports to the U.S.—worth close to 60 billion—will now be subject to the 50 percent tariff.
This affects key sectors like textiles, jewelry, shrimp, and furniture. These industries rely on thin profit margins and are highly vulnerable to cost hikes.
Analysts also warn that the U.S. could feel some of the effects. American consumers may face higher prices if Indian goods become more expensive.
Economist SP Sharma warned that the move could raise U.S. inflation. “If the inflation remains high, then the U.S. economy will not be able to grow at a normal rate,” he said.
He added that the growth rate during Trump’s first term was not impressive. “They grew at around 1.4 percent during the earlier Trump tenure of 2017 to 2020,” Sharma noted. “I believe again, they will face such a slowdown if they are increasing the tariff at such rates.”
Despite criticism, the Trump administration stands firm. Navarro said the tariffs are not only about energy. “It hurts American workers, hurts American businesses,” he said.
With over 66 percent of India’s U.S.-bound exports caught in the tariff net, other countries are expected to benefit. China, Vietnam, Mexico, and Turkey could step in as U.S. buyers seek new suppliers.
India currently exports about $86.5 billion worth of goods to the U.S. That number could drop to under $50 billion by 2026 if the tariffs remain.