TRADE WAR: TRUMP RAISES THE DUTY ON INDIAN OIL BY 25% MAKING THE TOTAL LEVY 50%

On Wednesday, Donald Trump signed a nine-section order that detailed a number of topics, including the history, the tariffs, the extent of penalties, and stacking.

US President Donald Trump made a significant announcement on Wednesday, announcing an additional 25% tariff on Indian goods, citing India’s ongoing purchases of Russian energy. As a result, trade tensions between the two nations are rising as the total tax in India reaches 50%.

Trump has previously accused India in a Truth Social post of aiding Russia’s war effort by purchasing substantial amounts of Russian oil and then reselling it on the open market to make money. Trump said, “They don’t care how many people in Ukraine are being killed by the Russian war machine,” and he said that he was “substantially raising” the tariff in response.

In the new executive order, signed on July 30, Trump affirmed that India is ‘directly or indirectly’ receiving oil from Russia. On Indian commodities, the decree imposes a new 25% ad valorem duty. With the exception of items that are in transit or warehoused prior to the deadline, this additional duty will take effect 21 days after the order date, which is September 17, 2025. With the exception of certain exclusions under the Trade Expansion Act of 1962, the new charge will be applied in addition to any current tariffs, taxes, or fees.

Trump had threatened to take action against India for its ongoing imports of Russian oil the day before he signed the order. He was also questioned about US imports of Russian fertilizers and chemicals during a news briefing. Trump retorted, “We will have to check,” adding that he was not aware of such imports.

India had brought up the fact that the US still purchases Russian products, such as chemicals and uranium for nuclear power facilities. Despite others taking similar moves, Indian officials claimed they were being unfairly singled out. Trump’s comments and the tariff increase have been sharply criticized by India’s Ministry of External Affairs, which has described the targeting of India as “unjustified and unreasonable.”

According to the government, market dynamics and the need for energy security are the foundation of India’s trade with Russia. Western nations diverted petroleum supplies to Europe following the start of the conflict in Ukraine, forcing India to look for alternative energy sources to meet demand.

Many different types of Indian exports to the US may be impacted by the latest tariff ruling. When entering the US market, industries such as chemicals, engineering items, textiles, and car parts may incur higher tariff expenses. This could lead to increased strains in commercial relations between the US and India.