President Donald Trump signed an executive order on Wednesday morning, imposing an additional 25% tariff on India in response to its continued purchases of Russian oil.
The new 25% tariff means that the tariff rate on India now sits at 50%. The Trump administration imposed a 25% tariff on India last week as it unrolled the president’s delayed “Liberation Day” duties on countries across the globe.
Trump has also threatened to hit Russia with a 100% secondary tariff if Moscow does not reach a peace deal with Ukraine by the end of the week. A secondary tariff would affect Russia by punishing the countries that do business with it, meaning India could see its tariff rate rise even higher.
The initial 25% tariff on India is set to take effect Thursday, with the new tariff scheduled to begin in 21 days. At a 50% tariff rate, India will be among the countries hit the hardest by Trump’s tariffs, alongside China and Brazil.
Trump’s executive order on Wednesday is a follow-through on his promise earlier this week to “substantially” raise the tariff rate on India after he pressured the country to stop “fueling the [Russian] war machine.” India ramped up Russian oil purchases in the months following Russian President Vladimir Putin’s invasion of Ukraine in February 2022.
“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. They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said on Monday. “Because of this, I will be substantially raising the tariff paid by India to the USA. Thank you for your attention to this matter!!!”
While India isn’t a key U.S. trading partner, it still exports tens of billions of dollars worth of goods to the United States each year. Indian exports to the United States include diamonds, jewelry, textiles, refined petroleum, and pharmaceuticals. India pushed back against criticism from the United States and the European Union over its purchases of Russian oil, saying that it is being “targeted.” The country added that “it is revealing that the very nations criticizing India are themselves indulging in trade with Russia.”