Center Slams “Unfair, Unjustified, Unreasonable” 50% Trump Tariffs on India
WASHINGTON, D.C. – August 7, 2025: Trade tensions just got a lot worse. India’s government is angry about the U.S. slapping a combined 50% tariff on imports from India because New Delhi keeps buying Russian oil. India’s foreign affairs office called the tariffs unfair, unjustified, and unreasonable and promised to do whatever it takes to protect India’s interests. This is a big setback for relations between the two countries.
Trade Fight Intensifies
President Trump signed an order Wednesday that adds a 25% tax on Indian goods, on top of another 25% tariff that was already in place. The new tax starts in 21 days, which means a total of 50% on many Indian exports to the U.S.
The White House said it’s doing this because India’s buying Russian oil is helping to fund Russia’s war in Ukraine. The Trump administration wants to punish countries that are supporting Russia’s military actions.
India’s Response
India’s foreign affairs office put out a strong statement saying that it buys oil based on market factors and that it’s important for energy security for its 1.4 billion people.
The statement said it’s hypocritical for the U.S. and other Western countries to keep trading with Russia while punishing India. It also said the tariffs are extremely unfortunate and unfairly target India.
Tariff Details
The first 25% tariff started on August 7, 2025. The second 25% tariff will begin on August 27, 2025.
The tariffs apply to lots of Indian goods, with only a few exceptions. This puts India among the most heavily taxed U.S. trading partners, like Brazil, and way higher than China’s 30% tariff.
Economic Impact on India
These new tariffs will probably hurt Indian industries. Ajay Sahai, from the Federation of Indian Export Organizations, said the 50% tariff could affect over half of India’s exports to the U.S.
This makes it hard for Indian exporters to compete. Sectors like textiles, leather, engineering, and pharmaceuticals are expected to take the biggest hit.
A report from the PHD Chamber of Commerce and Industry said the tariffs will have a limited effect on India’s GDP (about 0.19%), but that some sectors will face problems. They estimate that engineering exporters alone could lose $4-5 billion.
Geopolitical Situation
This fight has made relations between India and the U.S. worse. The good relationship between Prime Minister Modi and President Trump seems to be over, replaced by economic pressure.
This also comes at a bad time because India is improving its relationships with other countries. There are reports that Modi plans to visit China for the first time in seven years, which could mean a change in strategy.
The U.S. wants India to be a counterweight to China in the Indo-Pacific area. But these tariffs could hurt that relationship and push India closer to America’s rivals.
Russia Defends India on Trump Tariff Threats
Background
The dispute over Russian oil is just the most recent event in a series of trade disagreements. The previous Trump administration had already complained about India’s high tariffs on American goods and removed India from a program that gave duty-free access to many Indian exports.
India has always had a policy of making its own decisions on foreign and defense matters, including energy, without outside pressure.
After the 2022 invasion of Ukraine, India started buying a lot more Russian oil. By 2024, Russia was supplying over 35% of India’s oil, which is way up from less than 2% before the war.
U.S. Justification
The White House and Trump officials have been very critical. They say India is not only buying Russian oil but also profiteering by reselling refined products.
Trump has even criticized India on social media for not caring about the lives lost in Ukraine. His administration says the tariffs are necessary to pressure countries to support U.S. foreign policy.
Some analysts in the U.S. worry that the tariffs could backfire. They say this approach could hurt American businesses and consumers without changing India’s policies.
India’s Plan
India’s government is planning to support exporters who are affected by the tariffs. This includes making it easier to get loans.
Modi has also emphasized his Make in India plan again, calling for self-reliance and encouraging people to buy Indian-made goods. This is seen as a defiant message in response to U.S. pressure.
Some experts think India should retaliate strongly, while others suggest being cautious and waiting for negotiations to start again. The government says it will protect its interests.
Uncertainty
These tariffs mean the U.S. and India need to rethink their entire relationship. It’s not clear if they can resolve this through talking or if it will turn into a full-blown trade war.
The U.S. risks making a key strategic relationship unstable. India needs to protect its economy and foreign policy while understanding the new geopolitical situation. The next few weeks will be important.
