US doubles India tariff to 50% over Russia oil

'Unfair, unjustified, unreasonable', says MEA; new rates from Aug 28

- SHREYA NANDI

In a significant escalation of trade tensions, the Donald Trump administration on Wednesday imposed a further 25 percent tariff on Indian exports to the United States (US), blaming New Delhi's continued purchases of Russian crude oil. The move brings the total tariff burden to 50 percent, leaving India at a marked disadvantage compared to global competitors, including China, on virtually all merchandise exports to the US.

The US had already announced a 25 percent tariff on Indian imports, set to come into force from August 7. The additional 25 percent duty will apply to shipments arriving after a 21-day window, from August 28 onwards. These tariffs are being levied on top of existing World Trade Organization-compatible duties.

"I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," Trump said in an executive order issued by the White House. The order states that India's continued oil trade with Russia undermines US national security and foreign policy interests, particularly in relation to the conflict in Ukraine.

India has condemned the tariff hike, calling the US decision "unfair, unjustified and unreasonable" and emphasizing how the US in recent days "targeted" India's oil imports from Russia.