Trump Doubles India Tariffs To 50%, But Exemption May Actually Include Russian Oil

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 else—from textiles to auto parts—faces one of the steepest duties ever applied to a major US trading partner.

The order ties the penalty squarely to New Delhi’s purchases of Russian crude, declaring that Moscow’s actions in Ukraine “continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.”

However, energy itself seems to be staying outside the tariff net: Section 3(c) of Trump’s 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.

The edict “stacks” 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.

India’s foreign ministry blasted the move as “unfair, unjustified and unreasonable,” vowing to “take all actions necessary to protect its national interests.” Export groups warn the surcharge could erase up to half of India’s US-bound shipments, with gems, jewellery, and apparel hardest hit.

Trump shrugged the criticism, signaling broader action ahead, “You’re going to see a lot more… so many secondary sanctions.”

Trade economists put the drag at 0.3%–0.5% of India’s 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.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

Is the 30% Foreign Withholding Tax Making a Comeback?

Talk of reinstating a 30% withholding tax on foreign holders of US financial assets has...

Wednesday, April 9, 2025, 02:17:00 PM

How Tariffs Became US’s New Swiss Army Knife

While mainly an economic tool, tariffs are now being used to chase security objectives and...

Saturday, August 16, 2025, 09:24:00 AM

Russia’s Exchange Halts Dollar and Euro Trading After Latest US Sanctions

The Moscow Exchange has announced the suspension of all trading in US dollars and euros...

Thursday, June 13, 2024, 02:10:00 PM

Russia, India In Talks To Integrate Their SWIFT Versions Following Trade Boom

Russia and India are reportedly in talks to integrate their digital payment systems to encourage...

Wednesday, August 24, 2022, 03:09:00 PM

Trump To Walmart: “Eat The Tariffs”

President Donald Trump targeted Walmart (NYSE: WMT) in a social media post on Saturday, stating:...

Monday, May 19, 2025, 08:43:19 AM