US President Donald Trump issued an executive order on Wednesday, imposing an additional 25% tariff on imports from India, on the grounds that the country "directly or indirectly imports Russian oil", Reuters reported.
According to Trump's executive order, imports from India will be taxed after a 21-day grace period from the signing of the order, which takes effect on August 27, 2025. The aim is to put pressure on the economic flow between Russia and India, which the administration says supports the Russian war machine in Ukraine.
With the decision, Trump stressed that the Russian government's actions continue to constitute "unusual and "an extraordinary threat to the national security and foreign policy of the United States," the White House said in a statement. The decision follows a national emergency declared under previous executive orders over Russia's aggression in Ukraine.
According to a Reuters analysis, the decision will affect up to $64 billion in Indian exports to the United States, mainly in bulk cargo and sectors such as textiles, jewelry, pharmaceuticals and chemicals, which account for about 2% of India's GDP.
Although the economic impact so far appears limited compared to India's $4 trillion economy, analysts warn that high tariffs could undermine the competitiveness of Indian products in the US market. Nevertheless, some major companies such as Apple, Google and Tesla continue to invest and expand their production in India, viewing it as a key element of their supply chain diversification strategy.