Trump slaps extra 25% import taxes on India, doubling total tariffs to 50%

Dubai: US President Donald Trump has signed an executive order imposing an additional 25% tariff on Indian imports, citing India’s continued purchase of Russian crude oil, the White House confirmed on Tuesday — a move that significantly escalates trade tensions between the two countries.

The new levy will take effect in three weeks and comes on top of a separate 25% tariff set to take effect this Thursday — effectively doubling the tariff rate on Indian goods to 50%.

The measures were detailed in a White House statement titled "Addressing Threats to the United States by the Government of the Russian Federation." Trump cited national security and foreign policy concerns, alleging that India's imports of Russian oil — directly or indirectly — pose an "unusual and extraordinary threat" to the US.

The executive order maintains exemptions for certain sector-specific imports, including steel, aluminum, and pharmaceuticals. It also notes that Indian goods already in transit or meeting specific criteria will be exempt from the additional duties.

Imports falling under the new tariff order must meet stringent U.S. customs requirements, including classification under "privileged foreign status" when entering designated foreign trade zones.

The order also grants the U.S. President flexibility to revise or revoke the measures in response to shifting geopolitical dynamics, potential retaliatory actions by trading partners, or changes in Russia’s or India’s trade behavior.

Can the rate still be adjusted?

The order provides scope for adjustments, depending on evolving conditions, such as retaliatory actions by other countries or diplomatic steps taken by Russia or India to address the declared national emergency.

"Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25%," the order stated.

The move comes within a day of Trump reiterating his stance in an interview with CNBC, hinting at further escalation.

"India has not been a good trading partner because they do a lot of business with us, but we don't do business with them. So we settled on 25 percent, but I think I'm going to raise that rate quite substantially in the next 24 hours," Trump said on Tuesday.

Trump’s new tariff action risks disrupting India’s efforts to establish itself as a key global manufacturing base and a preferred alternative to China for American businesses seeking to diversify supply chains.

Although China continues to import oil from Russia, the executive order singled out India for penalties, leaving Beijing untouched.

At the same time, U.S.-China trade negotiations remain underway, with the U.S. maintaining a 30% tariff on Chinese imports, while China has countered with a 10% retaliatory tariff on U.S. goods.

- with inputs from Agencies