Trade relations between the US and India have further escalated. US President Donald Trump has imposed an additional tariff (duty) of 25% on India from Wednesday, after which the total US duty on Indian products has increased to 50%. The US has taken this step by adopting a strict stance on India’s purchase of crude oil from Russia.
New tariff effective from today
According to the order issued by the US Department of Homeland Security (DHS), this new duty will be applicable on all Indian products imported into the US from August 27, 2025. On August 7, Trump had announced a 25% tariff on 70 countries, including India. He then also said that India would be given 21 days to agree, after which the tariff could be increased by 50%.
PM Modi’s answer and analysts’ concerns
Reacting to this American action, Prime Minister Narendra Modi has said that, “We will not make any compromises with the interests of farmers, cattle breeders and small industries. The pressure will definitely increase but we will bear it.”
On the other hand, analysts have expressed deep concern over this move. Mark Linscott, senior advisor of ‘The Asia Group’, said that both countries have turned an advantageous position into a disadvantageous conflict. Partner Nisha Biswal has warned that a 50% tariff could cause heavy losses to India’s textile and clothing industry. He also said that this decision has raised questions about the ‘China+1’ strategy of the companies as they were planning to invest in countries like India apart from China.
Accusations of ‘profiteering on oil from Russia’
US Treasury Secretary Scott Besant has accused India of profiting by reselling crude oil from Russia, though India has dismissed the allegations as “unfair and baseless”. This new tariff may not only damage the trade relations between the two countries but may also weaken the global position of India’s manufacturing sector.