U.S.-India trade relations plunged into crisis on Wednesday after President Donald Trump issued an executive order imposing an additional 25% tariff on Indian goods, citing India's continued reliance on Russian oil.
The decision follows the collapse of trade negotiations and marks the most significant downturn in bilateral ties since Trump resumed office in January.
The order, which raises tariffs on some Indian products to as much as 50%, will take effect 21 days after 7 August. Key Indian export sectors such as textiles, footwear, and gems and jewellery are expected to be hit hardest.
In a sharp rebuke, India’s Ministry of External Affairs called the move “extremely unfortunate” and said, “India will take all actions necessary to protect its national interests.” It added that the country’s oil imports are based on energy security considerations and market dynamics, not politics.
The timing of the U.S. decision coincides with Indian Prime Minister Narendra Modi’s planned visit to China, his first in more than seven years, prompting speculation about shifting strategic alignments.
Madhavi Arora, an economist at Emkay Global, warned that the new levies would “practically kill trade between the two nations”. Another economist, Garima Kapoor from Elara Securities, noted that the tariff shock could pressure the Indian rupee and spur new calls for fiscal relief.
India imported a record $52 billion of Russian oil in 2024, according to government data. The White House did not comment on whether China, another major Russian oil buyer, might face similar penalties. However, U.S. Treasury Secretary Scott Bessent recently told Chinese officials that failing to curb such purchases could trigger new tariffs under pending legislation.
A senior Indian government official said the steep tariff rate and sudden nature of the move caught New Delhi off guard, even as it remained engaged in trade discussions with Washington. There are now behind-the-scenes efforts to negotiate a compromise that could involve a gradual cut in Russian oil imports in exchange for tariff relief.
The trade fallout adds further strain ahead of the 12 August expiry of the U.S.-China tariff truce, after which both sides are expected to reintroduce triple-digit duties on a wide range of goods.
U.S. President Donald Trump announced on Monday that he had removed Federal Reserve Governor Lisa Cook from her position, citing allegations of mortga...
U.S. President Donald Trump said on 26 August that U.S. colleges would face serious challenges without Chinese students....
The Lithuanian parliament on Tuesday approved a new prime minister, marking a key step in the formation of the country’s ruling coalition....
According to the European-Mediterranean Seismological Centre (EMSC), an earthquake struck 50 km north-northwest of Derbent, Russia, at 00:33 local tim...
India’s foreign minister says trade talks with Washington are ongoing, but New Delhi must defend its key interests as U.S. tariffs loom.
President Donald Trump has announced plans to nominate Sergio Gor, one of his closest aides, as the next U.S. ambassador to India, where he will be tasked with managing strained ties.
India and China announced on Tuesday plans to resume direct flights and enhance trade and investment as they cautiously rebuild ties following their 2020 border clash, though key border issues remain unresolved.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
Afghanistan’s interim administration on Tuesday unveiled a five-year “Development Strategy” aimed at creating jobs and promoting balanced development.
Libya’s Presidency Council chief Mohamed al-Menfi met on Tuesday in Tripoli with U.S. chargé d’affaires Jeremy Berndt to discuss ways to accelerate the country’s political process and lay the groundwork for national elections.
U.S. President Donald Trump announced on Monday that he had removed Federal Reserve Governor Lisa Cook from her position, citing allegations of mortgage fraud.
U.S. President Donald Trump said on 26 August that U.S. colleges would face serious challenges without Chinese students.
The Lithuanian parliament on Tuesday approved a new prime minister, marking a key step in the formation of the country’s ruling coalition.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment