Washington: In a move that has sent shockwaves through global trade corridors, US President Donald Trump has signed an executive order sharply increasing countervailing duties on Indian imports to a staggering 50 percent. The latest tariff hike, which includes a fresh 25% increment, is Washington’s direct retaliation to India’s continued oil trade with Russia a move Trump deemed unacceptable amid escalating geopolitical tensions.
“The Indian government continues to import oil from Russia, directly or indirectly. This undermines American sanctions and weakens our position on global energy diplomacy,” the executive order reads. The revised duty structure will come into effect within 21 days, signaling the seriousness of the US administration’s intent.
India has emerged as the hardest-hit among Asian nations. While Pakistan faces a 19% countervailing duty under the same framework, India has borne the brunt of Trump’s economic ire. The announcement follows Trump’s televised interview with CNBC, in which he lashed out at India for what he called “lopsided trade relations.”
“India has never been a fair trading partner. They benefit immensely from our market, yet fail to reciprocate. Now, they’re buying oil from our adversary. We’ve held back at 25 percent, but within the next 24 hours, it’s going up way up,” Trump warned during the broadcast.
The Indian government has not yet issued a formal response, but senior officials have confirmed that backchannel discussions are underway. A high-level US trade delegation is scheduled to arrive in New Delhi on August 25, where both nations are expected to attempt de-escalation through diplomatic channels.
Meanwhile, opposition leaders in India, particularly from the Congress party, have called for Prime Minister Narendra Modi to address the issue publicly and clarify India’s long-term energy and trade strategy. The Centre, however, reiterated that national interest and energy security would not be compromised, adding that the government is “closely evaluating” the evolving situation.
The tariff war, born out of broader geopolitical realignments, exposes the fragile fault lines in Indo-US relations. With India asserting its strategic autonomy and the US doubling down on its unilateral foreign policy approach, the next few weeks could shape the future of one of the world's most critical bilateral partnerships.