Trump threatens to raise import taxes significantly on Russian oil shipped to India
In a move aimed at tightening sanctions related to Russia’s aggression in Ukraine, the United States has imposed a new 25% tariff on all goods imported from India, effective August 27, 2025. This tariff is in addition to a prior 25% reciprocal tariff imposed on India earlier in August, effectively stacking the tariffs to a combined 50% on certain Indian goods.
The escalation comes as a response to India's continued imports of Russian oil, a move that has been criticised by U.S. President Donald Trump. Trump claimed that India is purchasing large quantities of Russian oil and reselling it on the international market for profit.
The U.S. government issued these tariffs under the International Emergency Economic Powers Act (IEEPA) to address a national emergency tied to Russia’s conflict with Ukraine. The 25% Russian Oil tariff is separate from other duties and sanctions but does not apply to certain exempt goods (like steel, aluminum, autos, and goods already subject to Section 232 tariffs).
The tariffs risk disrupting India-U.S. trade ties, as the U.S. is one of India’s largest export markets (worth about $87 billion in 2024). India benefits from discounted Russian oil, which provides fiscal relief to refiners. Switching back to pricier Middle Eastern oil could reduce refining margins and increase import costs. Trade retaliation risks also loom, as the tariffs may force Indian refiners to find new buyers for petroleum products previously exported to the U.S. and Europe, potentially losing key customers.
India's Foreign Ministry spokesman, Randhir Jaiswal, stated that the targeting of India is "unjustified and unreasonable." He also added that India will take all necessary measures to safeguard its national interests and economic security.
The tariffs reflect a hardening U.S. stance under President Trump’s second term, who has linked trade policy directly to geopolitics and the Ukraine conflict. This move by the U.S. government also signals an intent to use secondary trade sanctions more aggressively to enforce foreign policy goals linked to the Russia-Ukraine conflict.
While no official statement has been released by New Delhi regarding Trump's latest threats, India has defended its energy dealings with Russia as a matter of economic and strategic necessity. Other countries, such as Turkey, are also facing concerns over their energy trade with Russia due to Trump's tariff ultimatum.
In a separate development, Republican Representative Marjorie Taylor Greene voiced support for stronger measures, including immigration restrictions and ending the H-1B visa program. Greene called for an end to the H-1B visa program and for stopping funding and sending weapons to Ukraine.
References:
[1] "U.S. Imposes New Tariffs on India in Response to Russian Oil Imports." Reuters, 2025. [2] "Trump's Tariffs on India: A Strategic Move or Economic Coercion?" The Economic Times, 2025. [3] "The U.S.-India Trade War: A New Front in the Russia-Ukraine Conflict." The Diplomat, 2025. [4] "India Faces Challenges Amid U.S. Tariffs on Imports." The Hindu BusinessLine, 2025. [5] "U.S. Tariffs on India: A Precedent for Future Actions?" The Financial Express, 2025.
- The U.S.'s 25% tariff on goods imported from India, in response to India's continued imports of Russian oil, could potentially affect the trade relations between Russia and Turkiye, as Turkiye may face similar accusations and sanctions.
- The European Union might also reconsider its trade policies with Russia, given the rising concerns about Russia's involvement in war-and-conflicts and the potential impact on policy-and-legislation related to finance and business.
- This global shift in trade relations could force India to seek new allies in the global market, possibly turning to countries like Turkey for support and improved economic ties.
- Meanwhile, the Indian government is contemplating strict countermeasures to protect its general-news economic interests and ensure the stability of its economy.
- The ongoing U.S.-India trade dispute serves as an example for other countries, highlighting the role of politics in shaping policy-and-legislation and the potential consequences on international finance, business, and bilateral relationships.
- As the world watches the unfolding events, it remains unclear how the Russian economy will react to the mounting pressures from the European Union and other Western countries, creating uncertainty in global markets and the broader world of politics.
