U.S. Hits India with 25% Tariff Hike Over Russian Oil Ties

KOMAL SINGH

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America doubles down on India’s trade practices amid rising geopolitical tension

U.S. issues a sweeping 25% tariff on Indian goods from August 7, 2025. It follows May tariff actions and adds penalties tied to India’s Russian oil imports

Trump criticized India’s high import duties and continued oil and defense ties with Russia. He called India “one of the highest tariff regimes

Automobiles, textiles, smartphones, gems & jewellery are most exposed—though pharma and semiconductors are exempt. Exports worth up to $85B may face disruption

Indian markets reacted sharply—Sensex and Nifty down 0.4% post-announcement amid liquidity outflows. Reserve Bank holds GDP forecast at 6.5%

Experts question whether Trump has authority to impose such penalties unilaterally under U.S. law. Critics call it the worst U.S.–India crisis in decades

India offers tariff cuts to the U.S., reviews strategic import ties, and is preparing trade talks this fall. NSC invites for diplomatic discussions follow

India has a 21-day window to negotiate before tariffs take effect. Bilateral talks ramp up amid uncertainty