US imposes 25% Additional Tariff on Imports from India Over Russian Oil Trade
The United States today imposed additional tariffs on imports from India due to its Russian oil trade. Indian exporters are preparing for significant disruptions after the US Department of Homeland Security confirmed that Washington will impose an additional 25 percent tariff on all goods of Indian origin starting Wednesday. The move follows President Donald Trump’s announcement earlier this month, linking the punitive measure to India’s increased purchases of Russian oil, which Washington views as indirect support for Moscow’s war in Ukraine.
The new tariff structure means that Indian exports entering the US could face duties as high as 50 percent—among the steepest levels imposed by Washington on any trading partner. According to the notification, the additional duties will apply to all goods imported into the US for consumption, or withdrawn from bonded warehouses, starting 12:01 am EDT on Wednesday (9:31 pm IST).
Exceptions will only apply to in-transit consignments with proper certification, humanitarian aid, and items covered under reciprocal trade agreements.
The announcement has already rattled financial markets, with the Indian rupee weakening 0.17 percent to 87.7275 per US dollar in early trade, even as the dollar slipped against other major currencies.
India’s Commerce Ministry has not issued an official statement yet, but a senior official, speaking anonymously, acknowledged that the government sees little hope for immediate relief or postponement of the tariffs. The official noted that exporters hit by the additional duties may receive financial support, while being encouraged to diversify toward alternative markets such as China, Latin America, and the Middle East.
As part of this strategy, New Delhi has already identified nearly 50 countries as potential markets for expanding exports, particularly in key sectors like textiles, processed foods, leather goods, and marine products.
Meanwhile, Prime Minister Narendra Modi has vowed not to compromise the interests of India’s farmers, even if the country faces economic challenges due to the tariffs. Modi is also preparing for his first visit to China in seven years, signaling cautious steps toward recalibrating regional ties at a time of heightened global trade and geopolitical tensions.
