India has responded strongly to US President Donald Trump’s move on Wednesday to impose an additional 25% tariff on India for its crude oil procurement from Russia. The ministry of external affairs in a statement called the US move ‘unfortunate’ and reiterated that stand that India would continue to protect its national interests.In a strongly worded statement, the MEA said, “..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.”Trump signed an executive order on Wednesday announcing that India will face an extra 25% tariff over and above the 25% rate announced last week. While the 25% rate is effective from August 7, 2025, the newly announced additional tariff will come into place 21 days from now. Experts are of the view that this move by the Donald Trump administration leaves room for trade deal negotiations and talks.Also Check | Donald Trump doubles India tariff rate to 50%: Live UpdatesUnder the revised tariff structure, India and Brazil will face the highest tariff rate of 50% in the US market. This places India at a competitive disadvantage compared to other nations with lower duty rates: Myanmar (40%), Thailand and Cambodia (36%), Bangladesh (35%, Indonesia (32%), China and Sri Lanka (30%), Malaysia (25%), Philippines and Vietnam (20%).
India reacts strongly to Trump’s 25% additional tariff
Below is the full text of the ministry of external affairs statement on the latest additional 25% tariff on India for buying Russia crude oil:1. The United States has in recent days targeted India’s oil imports from Russia.2. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.3. It is therefore 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.4. We reiterate that these actions are unfair, unjustified and unreasonable.5. India will take all actions necessary to protect its national interests.
Trump’s pressure tactics on India
Trump issued an executive order titled “Addressing Threats to the US by the Government of the Russian Federation” that implements additional customs duty. Following this directive, Indian imports to the US, except for a limited exclusion list, will face a combined tariff of 50%.“The ad valorem duty imposed…shall be in addition to any other duties, fees, taxes, exactions, and charges applicable to such imports…,” the order said.The base tariff will take effect from August 7, whilst the supplementary charge will be implemented after 21 days, on August 27.“I find that the Government of India is currently directly or indirectly importing Russian Federation oil. Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent,” it said.Also Read | Reality check for Trump’s tariff threats! US, Europe continue to import billions worth of goods from Russia; where does India stand?Donald Trump administration has earlier accused India of helping ‘finance’ Russia’s war against Ukraine through its oil trade. Trump government officials have said that India’s procurement of Russian crude oil has emerged as an ‘irritant’ in the ties between India and the US.India imports approximately 88% of its crude oil requirements from international markets, which is subsequently processed into fuels such as petrol and diesel. Prior to 2021, Russian oil constituted a mere 0.2% of India’s total crude imports. Following Russia-Ukraine war, Indian refineries took advantage of discounted Russian oil, which was available at lower prices due to western sanctions. Currently, Russia has emerged as India’s foremost oil supplier.During July, India’s daily oil imports reached approximately 5 million barrels, with Russian supplies accounting for 1.6 million barrels.
