US Imposes 50% Tariff on Indian Goods Over Russian Oil Imports

The U.S. has rolled out a new 50% duty on imports from India, the highest duty the U.S. has imposed on any country. The tariff is a punishment for India's purchase of Russian crude oil, which, according to the U.S., undermines its attempts to penalize Russia for its violence in Ukraine. The tariff will take effect on August 27, 2025.

This 25% tariff is on top of the 25% duty already imposed on Indian goods, resulting in a total of 50%. The new duty will apply to several of India's largest exports to the U.S., namely textiles, gems and jewelry, auto parts, and seafood. However, currently, electronics like iPhones and pharmaceuticals will be excluded.

India’s government has strongly criticized the tariffs, calling them “unfair, unjustified and unreasonable.” Officials said India imports Russian oil to meet its energy needs and that many other countries are also importing Russian oil. India has promised to protect its national interests and has called for calm while seeking ways to resolve the trade dispute.

The tariffs are anticipated to raise to prices for Indian product in the US and diminish Indian exports by as much as 50%.  This really hampers India critical trade aspirations. India has its sights on doubling trade with the US, reaching $500 billion in the coming years.

Experts say the tariffs signal the commitment of the US is `onshoring` (bringing manufacturing back to the US) rather than having friend-shoring (supporting trade relations). This is causing troubles in US- India relations, which were previously amicable in recent years.

India is now also looking to build more trade with other partners like the UK and EU while trying to navigate its complicated relationship with the US and Russia as an emerging trade partner.

The tariffs are throwing uncertainty in the path of companies trying to find clarity in the challenging process of building supply relationships with India. For example, Apple will be assembling iPhones in India for the US market, which could be impacted.

Overall, this trade dispute reveals the complexity in US-India relations and the constantly evolving global trade landscape.The tariffs are anticipated to raise to prices for Indian product in the US and diminish Indian exports by as much as 50%.  This really hampers India critical trade aspirations. India has its sights on doubling trade with the US, reaching $500 billion in the coming years.

Experts say the tariffs signal the commitment of the US is `onshoring` (bringing manufacturing back to the US) rather than having friend-shoring (supporting trade relations). This is causing troubles in US- India relations, which were previously amicable in recent years.

India is now also looking to build more trade with other partners like the UK and EU while trying to navigate its complicated relationship with the US and Russia as an emerging trade partner.

The tariffs are throwing uncertainty in the path of companies trying to find clarity in the challenging process of building supply relationships with India. For example, Apple will be assembling iPhones in India for the US market, which could be impacted.

Overall, this trade dispute reveals the complexity in US-India relations and the constantly evolving global trade landscape.