India Slams Trump’s 50% Tariff as Unfair; Cites US Double Standards on Russian Oil

Moneylife Digital Team 07 August 2025

Economy & Nation

India has strongly condemned the US decision to impose an additional 25% tariff on Indian imports, calling the move 'unfair, unjustified and unreasonable'. The sharp response came after US president Donald Trump issued an executive order that doubles the total tariff on most Indian goods to 50%, citing India’s continued import of Russian oil as the reason.

In a statement, the ministry of external affairs (MEA) says India will take all necessary actions to safeguard its national interests. It also emphasised that the country’s oil imports are based on market factors and the critical need to ensure energy security for its population of 1.4bn (billion). MEA says India had already communicated its position clearly to the US and reiterated that New Delhi’s decisions are guided by economic considerations and long-term energy security.

Statement by Official Spokesperson??
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— Randhir Jaiswal (@MEAIndia) August 6, 2025

President Trump’s executive order, titled 'Addressing Threats to the US by the Government of the Russian Federation', claims that India’s ongoing oil trade with Russia undermines US foreign policy and national security. The new tariff, which comes into effect 21 days after the order’s signing, will apply to nearly all Indian goods entering the US market, except those already in transit and cleared before 17 September 2025. These duties will be added on top of existing tariffs, bringing the total levy on Indian exports to 50%. The order also includes strict customs and compliance requirements, with few exemptions.

India has objected to being singled out for punitive trade action, pointing to the fact that other large buyers of Russian oil—such as China and Turkey—have not faced equivalent penalties. While China imported US$62.6bn worth of Russian oil in 2024 and Turkey made substantial purchases, their goods face only 30% and 15% tariffs, respectively, far lower than the 50% now imposed on India.

The Global Trade Research Institute (GTRI) has criticised Washington’s decision as hypocritical, noting that the US itself imported strategic materials worth US$3.3bn from Russia in 2024. GTRI also highlighted that the European Union (EU) imported US$39.1bn in Russian goods last year, including US$25.2bn worth of oil, yet has not been targeted with similar sanctions. It accused the US of taking a selective and inconsistent approach to enforcing its sanctions policy, especially against allies.

Adding to the criticism, Finland-based think tank Centre for Research on Energy and Clean Air (CREA) released data supporting India's claim of being unfairly targeted. CREA’s findings revealed that since the start of the Ukraine conflict, EU countries have played a far larger role in contributing to Russia's fossil fuel revenues than India. The report adds weight to New Delhi’s complaint of double standards in Western trade policy.

Brazilian president Luiz Inácio Lula da Silva also criticised president Trump’s unilateral tariff decision and vowed to rally BRICS nations, including India, to oppose the United States’ growing use of trade penalties. In an interview, president Lula warned that such measures leave smaller economies vulnerable and urged a return to multilateral cooperation.

The additional US tariffs are expected to significantly impact Indian exports in key sectors such as textiles, marine products and leather goods. Exporters have already raised concerns about increased costs and reduced competitiveness in the US market which remains a vital destination for Indian products.

India has maintained that its oil purchases from Russia are legitimate, market-based and necessary for domestic energy needs. It is now exploring possible diplomatic and legal avenues, including engagement with the World Trade Organization and stronger coordination with BRICS partners, to respond to what it sees as unjust economic coercion.

As tensions rise, the broader implications of this tariff hike are being closely watched across the global trade and diplomatic community. India’s firm stand signals that it will not quietly accept being penalised for decisions that serve its national interest, particularly when similar actions by other nations are being overlooked.

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