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New Delhi: The White House on Wednesday announced that President Donald Trump has signed an executive order imposing an additional 25 per cent ad valorem tariff on goods imported from India, citing New Delhi’s direct or indirect imports of Russian oil. All Indian exports to the US will now face the higher duty, though the order provides a 21‑day window before the new tariff takes effect, giving India time to potentially strike a trade deal.
Reacting sharply to the move, India expressed strong displeasure, calling the step unfair and unjustified. The Ministry of External Affairs (MEA) said India’s oil imports from Russia are purely driven by market considerations and the need to ensure energy security for its 1.4 billion people. “It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” the ministry said in a statement.
The order further notes that Trump invoked existing US legislation aimed at restricting the import of Russian goods, including energy and oil, in response to Moscow’s war against Ukraine, which he said undermines America’s foreign policy.
"To deal with the national emergency described in Executive Order 14066, I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," the order stated.
Earlier this week, the Indian government hit back at President Trump’s warning of higher tariffs on Indian goods. In a statement, the Ministry of External Affairs accused the United States and the European Union of unfairly singling out New Delhi.
The MEA described Trump’s remarks as “unjustified and unreasonable.” They highlighted that India maintains strong trade relationships with both the US and EU.
India imported USD 50 billion worth of Russian crude oil in 2024‑25 till May, accounting for 35 percent of its oil bill. Imports averaged around 2 million barrels per day, valued at about USD 154 million daily at February prices. Russian oil formed 39 percent of India’s imports in May and climbed to 43.2 percent in June, an 11‑month high. June imports reached 2.08 million barrels per day, up 12 percent month‑on‑month. India relies on imports for 88 percent of its crude needs, with Russia as its top supplier despite US sanctions on Moscow.