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Home/Latest News/US Doubles Tariff on India to 50%: A Bold Move That Shakes Trade Dynamics
US Doubles Tariff on India to 50%: A Bold Move That Shakes Trade Dynamics
Latest News

US Doubles Tariff on India to 50%: A Bold Move That Shakes Trade Dynamics

By adminitfy
August 6, 2025 2 Min Read
0

India has expressed strong disapproval of the United States’ decision to impose an additional 25 percent tariff on Indian imports, labeling the move as “unfair, unjustified, and unreasonable.” The Ministry of External Affairs (MEA) stated that India would take all necessary measures to protect its national interests, suggesting potential diplomatic and economic retaliation might follow.

This statement emerged shortly after U.S. President Donald Trump signed a second Executive Order this month, which enacted further tariff increases on Indian goods. This action was justified by citing India’s ongoing oil trade with Russia, and the new tariffs are scheduled to take effect on August 27, 2025.

“It is extremely unfortunate that the United States has chosen to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” remarked MEA spokesperson Randhir Jaiswal. “We reiterate that these actions are not only unfair but go against the principles of equitable international trade.”

The latest Executive Order, invoking U.S. national emergency powers, claims that India’s direct and indirect imports of Russian oil are an “unusual and extraordinary threat” to U.S. foreign policy amid the ongoing Russia–Ukraine conflict. The order broadly defines Russian-origin petroleum products and warns that even third-party transactions could face penalties under this new rule.

This measure follows public warnings from President Trump on his Truth Social platform, where he criticized India for importing “massive amounts” of oil from Russia and threatened trade repercussions. The new 25 percent tariff compounds an existing 25 percent duty imposed earlier in the month, bringing the total tariff burden on Indian exports to a historic 50 percent.

The order specifies that shipments already in transit before August 27 and cleared by September 17 may be exempt from the new tariffs. However, all other Indian-origin goods will be subject to the full tariff. The order also empowers various U.S. agencies, including the Departments of State, Treasury, Commerce, Homeland Security, and USTR, to enforce compliance, update tariff schedules, and monitor imports for compliance violations.

India’s government has indicated it will not remain passive regarding what it perceives as targeted economic pressure. The MEA’s statement implies that India may pursue diplomatic consultations, potential retaliatory measures, and engagement with international trade bodies in the days ahead.

Trade analysts caution that this tariff increase may significantly affect bilateral relations and could adversely impact Indian exporters in various sectors, including textiles, pharmaceuticals, and electronics, which are expected to bear the brunt of the heightened tariffs.

Original Source: https://www.indiatodayne.in/international/story/us-doubles-tariff-on-india-to-50-percent-india-vows-to-defend-national-interest-1257176-2025-08-06?utm_source=rssfeed
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Publish Date: 2025-08-06 21:41:00

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