Washington / New Delhi: US President Donald Trump has announced a 25% tariff on all goods imported from India, effective August 7. However, there is still no clarity regarding the imposition of an additional penalty, as there is no mention of such a fine in the official executive order issued by the Trump administration, according to sources.
The penalty, believed to be linked to India’s continued imports of crude oil and military equipment from Russia, has not been clearly detailed. Trump had earlier indicated that an additional fine would be imposed, but the official order only mentions the tariff hike and omits any reference to penalties.
Sources familiar with the matter said, “There is confusion over this issue because the executive order makes no mention of any penalty.” The tariff and the potential penalty are widely seen as pressure tactics aimed at compelling India to align with US demands on global geopolitical matters, particularly in relation to Russia.
Recently, the US has signed favorable trade deals with major partners like Japan, the UK, and the European Union. India, however, has become the first country to be penalized for continuing imports from Russia. Previously, Trump had imposed steep tariffs on China as well, but never levied a penalty, even though China remains the largest importer of Russian oil.
Before the Russia-Ukraine war, India’s crude oil imports from Russia accounted for just 0.2% of its total oil imports. That figure has now surged to 35–40%, making India the second-largest buyer of Russian oil after China.
Trump has repeatedly criticized India for its longstanding defense and energy trade with Russia. While the global community has urged Russia to end its invasion of Ukraine, India has significantly increased its imports of discounted Russian oil since the conflict began in February 2022. This shift in trade is reportedly a major concern for Washington.
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