President Donald J. Trump signed an Executive Order imposing tariffs on India in response to its continued purchase of Russian Federation oil
FinTech BizNews Service
Mumbai, August 6, 2025: Today, US President Donald J. Trump signed an Executive Order imposing tariffs on India in response to its continued purchase of Russian Federation oil, and establishing a process for the potential imposition of similar tariffs on other countries that directly or indirectly import oil from the Russian Federation.
The President found that India is currently importing Russian Federation oil. Accordingly, to address the national emergency stemming from the Government of the Russian Federation’s actions taken against Ukraine, he is imposing an additional 25% tariff on imports from India, effective August 27, due to India’s direct or indirect importation of Russian Federation oil.
This additional 25% tariff is over and above the already imposed 25% tariff on imports from India. Earlier on Tuesday, President Trump had stated that the US would likely very substantially raise tariff on India over the next 24 hours.
This tariff is in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports, unless subject to existing or future actions under section 232 of the Trade Expansion Act of 1962.
This tariff is also in addition to any tariff applicable under Executive Order 14257 of April 2, 2025, as amended, but the additional 25% tariff imposed by this order shall not apply to articles set forth in Annex II to Executive Order 14257.
The Secretary of Commerce, in coordination with the Secretary of State, Secretary of the Treasury, and other senior officials, will determine whether other countries directly or indirectly import Russian Federation oil and recommend further actions to the President as needed.
COUNTERING THE RUSSIAN FEDERATION’S THREAT TO U.S. NATIONAL SECURITY AND FOREIGN POLICY:
The Russian Federation’s actions in Ukraine pose an ongoing threat to U.S. national security and foreign policy, necessitating stronger measures to address the national emergency.
India’s importation of Russian Federation oil undermines U.S. efforts to counter Russia’s harmful activities.
India’s subsequent reselling of this oil on the open market, often at significant profit, further enables the Russian Federation’s economy to fund its aggression.
By imposing a 25% tariff, President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences on the Russian Federation for its ongoing aggressions.
PUTTING AMERICA FIRST:
President Trump has been consistent that he will not tolerate Russian Federation aggression.
President Trump has been transparent that the Russian Federation would not be facing these actions if they were to “get a deal where people stop getting killed.”
President Trump has also been upfront that India would face tariffs for buying Russian Federation oil: “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits …. Because of this, I will be substantially raising the Tariff paid by India to the USA.”
USA consumer will pay a higher price for the pharmaceutical and jewelry exports.
Mr. Nachiketa Sawrikar, Fund Manager Artha Bharat Global Multiplier Fund, shares very insightful perspective on the latest tariffs announced today by US on Indian imports.
Mr. Nachiketa explains: “It is a sad day for globalization and a sad day for USA - India bilateral relationship. Two recent events have put a dent on India-USA relationship - one is India not asking for Trump to get a Nobel Peace Prize and second is President Putin not agreeing to a ceasefire on Ukraine.
President Trump wants to punish Russia and apply maximum pressure on Russia’s friends, which is India at this time.
However, President Trump has miscalculated the psyche of Indian population. PM Modi and India are not going to give in to President Trump’s bullying.
The USA consumer will pay a higher price for the pharmaceutical and jewelry exports. And India will need to writeoff about $50 Bn of exports to USA. That is a 0.1% impact on India’s GDP. Indians will gladly pay that price as self respect is priceless.”
