The United States has declared a 25% tariff on Indian imports, the overall tariff amounting to 50%. The new executive order signed by President Donald Trump indicates that India has been importing crude oil and petroleum products both directly and indirectly from Russia. The administration asserts that this habit affects the foreign policy of the US and US national security.
Based on the directive, the US will categorise the aspect of indirectly importing as getting the oil supplies with intermediaries or third nations where a source can be traced to Russia. These imports according to the white house are against the spirit of previous sanctions that were issued under the executive order 14066 signed in March 2022. The order prohibited the importation of Russian energy into the US after invading Ukraine.
The tariffs that were announced are set to be enforced 21 days after the executive order is announced. This order, however, makes exceptions to already shipped goods going to the United States, provided that the goods are received before 12.01 am EDT of September 17, 2025. Such a delay may allow India and Russia to renegotiate or restructure their energy trade.
In 2025, this is the second time the Trump administration will have its focus on Indian imports. The previous move in April was a 25% duty via Executive Order 14257, which was used to target countries that had an excess trade balance over the US. However, as opposed to the said order, the present one specifically targets energy trade with Russia.
More than $64 billion worth of goods are exported by India to the US each year. Economists caution that the overall 50% tariff may have a considerable effect on the trade flow, mainly in areas where drugs, textiles, and chemicals trade.
The executive order gives the US Department of Commerce and other vital agencies a chance to pay more attention to the international energy trade. Similar tariffs to those faced in the future can be applied to the countries that were recently discovered to be getting the supply of Russian oil or at least the links with the Russian oil, either directly or with the assistance of a third party.
The US government has elaborated that it can amend or heighten the purview of tariffs according to the compliance of a country with the US foreign policy. In a case where any country reacts, the executive order also provides changes in further tariffs or new enforcement. On the other hand, trade restrictive measures would be reduced in countries that terminate energy interactions with Russia.