US doubles tariff on India to 50 percent, India vows to defend national interest

India strongly criticized the United States' decision to impose an additional 25 per cent tariff on Indian imports, calling the move "unfair, unjustified, and unreasonable." The Ministry of External Affairs (MEA) said India would take all necessary measures to safeguard its national interests, hinting at a possible diplomatic and economic retaliation.

The statement comes hours after U.S. President Donald Trump signed a second Executive Order this month, announcing further tariff hikes on Indian goods, citing India’s continued oil trade with Russia as a justification. The new tariffs are set to take effect from August 27, 2025.

“It is extremely unfortunate that the United States has chosen to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” said MEA spokesperson Randhir Jaiswal. “We reiterate that these actions are not only unfair but go against the principles of equitable international trade.”

The latest Executive Order, invoking U.S. national emergency powers, claims India’s direct and indirect imports of Russian oil represent an “unusual and extraordinary threat” to U.S. foreign policy amid the ongoing Russia–Ukraine conflict. It defines Russian-origin petroleum products broadly, warning that even third-party transactions may be penalized under the new rule.

The measure follows days of public warnings by President Trump on his Truth Social platform, where he accused India of importing “massive amounts” of oil from Russia and threatened trade consequences.
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This new 25% tariff adds to a prior 25% duty already imposed earlier this month, bringing the total tariff burden on Indian exports to 50% — a historic high in recent bilateral trade relations.

The order specifies that shipments already in transit before August 27 and cleared by September 17 may be exempt. However, all other Indian-origin goods will face the full tariff load. It also empowers U.S. agencies, including the Departments of State, Treasury, Commerce, Homeland Security, and USTR, to enforce compliance, update tariff schedules, and monitor imports for violations.

The Indian government has signaled that it will not remain passive in the face of what it sees as targeted economic pressure. The MEA’s statement suggests that diplomatic consultations, potential retaliatory measures, and engagement through international trade bodies could follow in the coming days.

Trade analysts warn that the move may significantly impact bilateral relations and Indian exporters across sectors, including textiles, pharmaceuticals, and electronics, which are likely to feel the brunt of increased tariffs.