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US President Donald Trump has announced to impose 25% extra tariff on India. He signed the executive order associated with it on Wednesday. This order will be applicable 21 days later i.e. from August 27.
The executive order states that this action has been taken on India due to Russian oil purchases. Earlier, he announced 25% tariff on India on 30 July. Now India will have a total of 50% tariff.
The Indian Ministry of External Affairs has denied this action as wrong.
Ministry of External Affairs Answer to America-
The US has recently targeted India’s oil imports from Russia. We have already made it clear that we buy oil based on the market status and its aim is to ensure the energy security of 140 crore Indians. It is very unfortunate that America is imposing additional tariffs on India, while many more countries are also doing the same thing in their interest. We repeat that these steps are inappropriate, illegitimate and wrong. India will take every necessary steps to protect its national interests.
It is written in Trump’s Executive Order-
“The Government of India is importing oil from Russia directly and indirectly. In such a situation, 25% extra tariffs will be applicable to India’s goods entering the US.
However, in certain circumstances, this tariff will also be exempted as if a goods is already in the sea and is on the way, or if it has reached America before a particular date.
Earlier in March 2022, the US issued an order to completely ban the import of Russian oil and its associated products in its country.
Now the Trump administration found that India is buying that Russian oil, which is providing financial help to Russia. Because of this, now the US has decided to impose this new tariff on India. “
Tariff will not apply to some Indian goods
- In another order issued in April 2025, certain products were already exempted from tariffs, those discounts will still continue.
- These goods include semi-sector, smartphones, computers, pharmaceuticals, automotive parts, copper and other metal and minerals.
- This means that the extra tariff will not be applicable if these goods from India are sent.
- This order also states that the President can amend it if needed in the future, that is, the rate of tariff can be changed or added new provisions.
Trump threatened to put extra tariffs in 24 hours
Earlier, the US President on Tuesday threatened to impose extra tariffs on India within 24 hours.
Trump had said that India is working to fuel the Russian war machine against Ukraine by trade with Russia. Because of this, America needs to take strict steps.
Trump also said that India is not a good business partner. India’s tariffs are the highest in the world.
250% tariff was threatened on medicine yesterday
Trump yesterday threatened to impose 250% tariffs on India’s pharmaceutical products. Trump had said in an interview to CNBC that he would initially put small tariffs on pharmaceuticals, but then increase it to 150% and then 250% in one to one and a half years.
Trump had said- We want medicines to be made in our country itself. He believes that the US is very much dependent on abroad for pharma products, especially on India and China. This tariff can affect the Indian pharma sector.
The US buys generic medicines, vaccines and active ingredients from India. In 2025, India’s pharmaceutical exports to the US were more than $ 7.5 billion (about 65 thousand crores).
According to the US Food and Drug Administration, about 40% of all the generic drugs used in the US come from India. Read this news too …
India is the second largest buyer of Russian oil
India is the largest buyer of Russian oil after China. Before the Ukraine War, India used to import only 0.2% (68 thousand barrels per day) from Russia. By May 2023 it increased to 45% (2 million barrels per day), while India is buying 17.8 lakh barrels of oil from Russia every day from January to July in 2025.
For the last two years, India has been buying more than $ 130 billion (Rs 11.33 lakh crore) every year.
How will the tariff affect India?
The goods going from India to America, such as medicines, clothes and engineering products will be taxed at 50%. This will make Indian goods expensive in America. Their demand may decrease. India’s trade surplus with the US (export more, imports) may also be reduced.
- smart fone: India has become the largest country to supply smartphones to America in the second quarter of 2025, which overtook China. India’s smartphone exports have secured 44% share in the US segment. They will not be targeted right now, but 25% tariffs in future can increase their prices, which can affect the competition.
- Diamonds and Jewelery: The US exports more than $ 9 billion (about 79 thousand crores) to India from India, including diamonds, gold-silver jewelry and colored gems in the natural and lab. The new tariffs can increase their prices, which can reduce the demand for Indian jewelery and also threaten jobs.
- Electronics: The US from India has about $ 14 billion (about 1.2 lakh crore rupees) electronics products such as laptops and servers, exports. Although these products are currently on duty-free as the US section 232 investigations are going on, but if they are tariffs in future, then India’s cost can be reduced.
- Pharmaceuticals (medicines): The Indian Pharma sector is a large supplier of cheap medicines worldwide. The US imports generic medicines, vaccines and active ingredients from India, which exported more than $ 7.5 billion (about 65 thousand crores) in 2025. If a tariff is imposed on pharma, it will be a major setback for India’s exports, as the US takes more than 30% of India’s pharma exports.
- Textile and Clothes: India is exported from handmade silk to industrially made cotton clothing from India, which cost more than $ 2.5 billion (about 22 thousand crores) in 2025. 25% tariffs will increase their prices, which can affect the demand for Indian textile and this sector can weaken.
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