U.S. Slaps India with Double Tariffs (50%!), and India Is Not Happy
NEW DELHI, India – August 7, 2025: Things just got real between the U.S. and India. The Trump administration just cranked up the heat by slapping a 25% extra tariff on Indian goods, which got to an insane 50%. The White House says it’s because India keeps buying cheap oil from Russia. New Delhi is calling the move not fair and totally out of line. These new tariffs are going to kick in later this month, and they could mess up some big parts of India’s economy. It also sounds like this is not good for the U.S.-India friendship.
Why the U.S. Did It
President Trump signed an order this past Wednesday that pretty much blames India for still buying oil from Russia. This new 25% tax is on top of another 25% tariff that started this past Thursday, August 7, 2025. This first tariff was kind of a general thing aimed at a bunch of countries, but this second one is just at India for buying energy from Russia. There’s a 21-day period before the new tariff kicks in on August 27, so maybe they could still hash things out.
India’s Response: We’re Not Backing Down
India’s government didn’t waste any time firing back. The Ministry of External Affairs (MEA) put out a seriously strong statement saying the tariffs are not fair. They said India needs that oil to keep things running for its 1.4 billion people. Prime Minister Narendra Modi said India is ready to pay a big cost to protect its farmers and the country. Basically, they’re not giving in to the pressure.
Who’s Gonna Hurt?
That 50% tariff puts Indian companies at a huge disadvantage. The U.S. buys a ton of stuff from India—like 18% of all its exports. The industries that are going to get hit hardest are stuff like jewelry, clothes, seafood (especially shrimp), and car parts. Some industry groups are already freaking out. The Confederation of Indian Textile Industry (CITI) thinks they might stop getting orders and could even need to sell existing orders at a loss. Also, lots of jobs are at risk! The seafood industry is calling it doomsday since almost half of their exports go to the U.S. Exports to the U.S. could drop by $4-5 billion.
The Russia and China Angle
This whole thing is about India not wanting to stop buying oil from Russia. Ever since the Ukraine conflict, India has been buying a lot more cheap Russian oil. Now, Russia is their top oil source. The Trump administration is saying that India is basically helping Russia fund their conflict. Some people are saying that the U.S. is being a hypocrite because it gave China a 90-day break on tariffs, even though China buys more oil from Russia and Iran than India does.
Is This the End of the U.S.-India Bromance?
This tariff thing is a big deal for U.S.-India relations. They used to be pretty tight, especially because they both have issues with China. But the Trump administration seems more worried about trade deficits. This tariff shows that trade is more important than other things. They were trying to work out a trade deal, but they couldn’t agree on things. Some folks think the tariffs are meant to force India to give in. But India isn’t showing any signs of that; it could go it alone.
What Happens Next?
There’s a small window for a fix before August 27. A U.S. trade group might head to India to talk but seems unlikely. If the tariffs stick around, India might hit back with its own tariffs on American goods, and that could lead to a trade war. The Indian stock market already dropped, and the rupee is getting weaker.
