Trump Imposes Additional 25% Tariff on India Over Russian Oil Imports Amid Escalating Global Trade Tensions
Trump slaps an extra 25% tariff on India over Russian oil imports, escalating tensions as global trade battles intensify ahead of US elections.
President Trump signs sweeping tariff orders, imposing new 25% duties on India amid growing tensions over Russian oil imports.
US President Donald Trump has announced an additional 25% tariff on Indian imports in response to India’s continued purchase of Russian oil, significantly intensifying trade tensions between the two countries. The new duties, set to take effect in 21 days, will be stacked atop the existing 25% country-specific tariff—bringing the total tariff rate on Indian imports to 50%.
Trump, in a CNBC interview, accused India of “fueling the war machine” by buying oil from Russia, stating, “If they’re going to do that, then I’m not going to be happy.” Prime Minister Narendra Modi responded sharply, calling the new tariffs “unjustified” and criticized Washington’s “double standards” regarding Russia.
Tariff Tsunami
The move is part of a broader trade offensive launched by Trump in recent days, which includes:
- Canada: Tariffs raised to 35%.
- Brazil: 50% tariffs on most goods, with key US imports like orange juice and aircraft parts exempted.
- South Korea: A new trade deal imposing 15% duties on Korean goods while sparing US exports.
- EU: A fresh agreement slapping 15% tariffs on European imports.
- Semiconductors & Pharma: Tariffs up to 250% are being considered for these sectors in the coming weeks.
- De Minimis Rule: The exemption for low-value imports under $800 will be revoked by Aug 29.
- Copper: 50% tariffs now in effect on semi-finished copper products.
In contrast, Mexico—the US’s largest trading partner—has been granted a 90-day reprieve.
India-US Deal Hits a Wall
Negotiations between India and the US, once optimistic, have stalled in recent months. Key sticking points reportedly involve agricultural and dairy imports. With Trump’s fresh tariff strike, the prospect of a deal appears further off than ever, sparking fears of a full-blown trade war.
Ripple Effects Across Globe
Trump’s aggressive tariff strategy is also shaking other key alliances:
- Japan: Confusion looms over a recent deal allowing Ford’s F-150 pickup exports, while Tokyo pushes for tariff reductions on cars and car parts.
- Canada: Prime Minister Mark Carney has indicated a possible rollback of some retaliatory tariffs in an attempt to balance domestic industry needs with diplomatic pressure.
- Honda: The Japanese automaker reported a 50% drop in Q1 operating profit, citing the 27.5% US import tariffs as a key reason.
As global leaders scramble to reassess their trade strategies, Trump’s sweeping tariffs are expected to have wide-ranging implications on global supply chains, inflation, and diplomatic relations.
