President Donald Trump pushed through with his earlier threat and signed an executive order slapping an extra 25% ad-valorem duty on all Indian imports, sending the effective levy to 50% once the measure takes effect after a 21-day grace period. Goods already en route before August 27 escape the hike, but everything elseāfrom textiles to auto partsāfaces one of the steepest duties ever applied to a major US trading partner.
The order ties the penalty squarely to New Delhiās purchases of Russian crude, declaring that Moscowās actions in Ukraine ācontinue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.ā
BREAKING!! Trump just announced a new executive order today imposing a 25 percent ad valorem duty on all imports from India.
— Alex Raufoglu (@ralakbar) August 6, 2025
The order explicitly states the tariff is a direct consequence of India's continued purchase of Russian oil. pic.twitter.com/HT3Oe0rn4B
However, energy itself seems to be staying outside the tariff net: Section 3(c) of Trumpās order exempts products already shielded by Annex II to Executive Order 14257 signed last April, a list that includes gasoline, diesel, and other petroleum fuels. That means refined fuel produced in India from Russian crude can still sail into US ports duty-free, eroding the stance against the very Russian export that triggered the increased tariff for India in the first place.
I love the fact the 25% extra US tariff on India doesn't apply if India buys Russian oil, refines it and sells the, say, gasoline or diesel, in the US market
— Javier Blas (@JavierBlas) August 6, 2025
(US imports of energy are exempted from the tariffs that Trump has so far imposed, and that's the case in this instance)
The edict āstacksā on top of earlier reciprocal duties yet spares electronics and pharmaceuticals, and it lets previous Section 232 metal tariffs stand separately. The White House also reserved the right to expand the regime or suspend it if India scales back Russian inflows or if other nations step up similar trade.
Indiaās foreign ministry blasted the move as āunfair, unjustified and unreasonable,ā vowing to ātake all actions necessary to protect its national interests.ā Export groups warn the surcharge could erase up to half of Indiaās US-bound shipments, with gems, jewellery, and apparel hardest hit.
Trump shrugged the criticism, signaling broader action ahead, āYouāre going to see a lot more⦠so many secondary sanctions.”
Trade economists put the drag at 0.3%ā0.5% of Indiaās FY2026 GDP and caution that the dispute risks undercutting two decades of steadily warming strategic ties.
Information for this briefing was found via BBC, NDTV, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.