India-US Tariff War / 25% additional tariff will be applicable on India from tomorrow, US issued notification

India-US Tariff War: US President Donald Trump's administration has issued a notification to impose an additional 25% tariff on goods imported from India, which will come into effect from 27 August 2025 at 12:01 am (US time). This new tariff is in addition to the 25% tariff applicable from 7 August 2025, which means that goods exported from India to the US will now have to pay a total of 50% tariff. This move may further deepen the trade tension between the two countries, as there has been a failure to finalize a trade deal between India and the US.

Reason for tariff: Russian oil and trade disagreement

The US has imposed this additional tariff on India in response to buying oil from Russia. The Trump administration says that India's purchase of Russian oil strengthens Russia's economy, which helps prolong the Russia-Ukraine war. The US argues that countries like India should stop buying Russian oil to reduce Russia's economic strength.

Apart from this, the US is pressuring India to increase its exports in the agriculture and dairy sector, but the Indian government has rejected this demand. Prime Minister Narendra Modi has made it clear that India will not compromise on the interests of its farmers. He said, "We are being pressured, but we cannot compromise with our farmers. We will bear it."

History of tariffs on India

Ever since Trump came to power, he has been talking about adopting tough policies in global trade. The first 25% tariff on India was imposed on 7 August 2025, aimed at preventing India from buying Russian oil. When India ignored this pressure, the Trump administration decided to impose an additional 25% tariff, taking the total tariff to 50%. This move could be a big blow to India's exporters, as the competitiveness of Indian goods in the US market may decrease with a 50% tariff.

Russia-Ukraine war and global impact

The US says that reducing Russia's economic power is necessary to end the Russia-Ukraine war. The US considers the purchase of Russian oil by countries like India as an obstacle to this goal. The Trump administration has also appealed to European countries to join this campaign, so that more economic pressure can be put on Russia.

However, some analysts believe that this tariff policy is not only a strategy to weaken Russia, but America's trade ambitions are also behind it. Trump has taken this tough step after the failure of trade talks with India and the rejection of the demand to open the Indian market for American agricultural products.

India's response

India has taken a tough stand on this tariff. Prime Minister Modi has made it clear that India is committed to protecting its farmers and economic interests. The Indian government has indicated that it may consider other trade strategies in response to this tariff, such as increasing trade with BRICS countries or further strengthening relations with Russia and China. Some experts believe the tariffs could push India to seek alternative trade partnerships, harming US interests.

The US Department of Homeland Security released a draft notice detailing plans to impose a 50% tariff on Indian products, as previously announced by US President Donald Trump (n/1) pic.twitter.com/ut4MuDJxN1

— Press Trust of India (@PTI_News) August 26, 2025