Trump Doubles Tariffs on Indian Imports Due to Russian Oil
On Wednesday, August 27, U.S. President Donald Trump announced the doubling of tariffs on Indian imports from 25% to 50%, in a move seen as a direct response to India’s increasing purchases of Russian oil.
This decision marks one of the highest tariffs imposed by the Trump administration since his return to the White House. Treasury Secretary Scott McGann disclosed that Washington is considering going further with legislation in Congress aimed at imposing additional tariffs on certain imports.
Economic Implications for India
India, the fifth-largest economy in the world, sees the United States as its primary trading partner, exporting over $87 billion annually to the U.S. Experts believe these tariffs could cast a shadow over several Indian sectors.
While some products will remain exempt, such as iPhones manufactured in India, Trump hinted at the possibility of imposing sector-specific tariffs of up to 100% on semiconductors and electronic products.
Concerns Among Exporters
American media conveyed the concerns of Indian exporters regarding declining orders, investment relocations, and layoffs. The Federation of Indian Export Organizations (FIEO) has also noted a beginning slowdown in the textile, jewelry, and seafood sectors.
In contrast, American importers are increasingly turning to Asian alternatives such as Bangladesh and Vietnam, raising concerns in New Delhi about the social ramifications of the decision.
Background of the Decision
India is the second-largest importer of Russian oil after China, with its imports rising significantly since 2022. In 2024, Russia accounted for 36% of India’s total oil imports, compared to just 2% before the onset of the war in Ukraine.
