The United States has announced a new 25 percent tariff on goods imported from India, citing India’s continued purchase of energy from Russia as the reason. According to a statement released by the White House on Thursday, US President Donald Trump signed an executive order implementing the tariff, which will go into effect within 21 days.
This new levy will be added on top of an already scheduled 25 percent country-specific tariff set to take effect imminently. The move is seen as part of the Trump administration’s broader strategy to penalize countries that continue trading with Russia amid ongoing geopolitical tensions.
Steel and aluminium trade also under scrutiny
India is also a major exporter of steel and aluminium to the US. However, these sectors are currently taxed under a separate executive order, and it remains unclear whether the latest measure will override or add to the existing tariffs on those goods.
In an interview on Tuesday this week, President Trump criticized India’s energy imports from Russia, stating, “They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy.”
Indian exporters call move “extremely shocking”
The Federation of Indian Export Organisations (FIEO) expressed strong concern over the new tariffs, calling the US decision “extremely shocking.”
"This move is a severe setback for Indian exports, with nearly 55 percent of our shipments to the US market directly affected," the FIEO said in a statement.
“The 50 percent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30-35 percent competitive disadvantage compared to peers from countries with lesser reciprocal tariffs.”
The impact of these tariffs is expected to ripple across several Indian export sectors, with trade analysts warning of a significant drop in export volume and profitability unless exemptions or diplomatic resolutions are reached.
