President Trump imposed an additional 25% tariff on top of the existing 25% tariff on Indian goods, citing India’s high tariffs, trade barriers, ties with Russia, and imports of Russian oil.

US President Donald Trump issued an executive order on Wednesday, 6 August 2025, adding an additional 25% tariff on Indian goods.

This is in addition to the 25% tariffs previously announced on Indian imports, which went into effect on 1 August 2025. This means the US has imposed 50% tariffs on Indian goods, significantly increasing the cost of these imports and potentially escalating trade tensions between the two countries.

The increased US tariffs are in response to India’s high tariffs, trade barriers, ongoing defence and energy ties with Russia, as well as the country’s direct or indirect imports of Russian oil.

Trump has warned of increased tariffs on Russia and secondary sanctions on its allies, such as India.

Earlier, the Trump administration stated that it was considering increasing tariffs on Indian imports, accusing India of profiting from reselling Russian oil and showing indifference to the Ukraine war.

“India is not only buying massive amounts of Russian Oil”, but is “selling it on the Open Market for big profits,” Trump posted on Truth Social on 5 August 2025. 

In response, India’s Ministry of External Affairs dismissed the criticism in a released statement on 4 August 2025, explaining that India began importing oil from Russia only after traditional supplies were redirected to Europe due to the Ukraine conflict.

The statement also criticised the targeting of India as “unjustified and unreasonable” and affirmed that India would take all necessary steps to protect its national interests and economic security.

The move is part of the broader “Liberation Day” trade overhaul launched on 2 April 2025, which includes a 10% general tariff and higher rates for countries with large trade surpluses or unfair practices.