In a major policy move, US President Donald Trump on Tuesday signed a sweeping Executive Order imposing an additional 25 per cent tariff on all Indian imports, saying India’s continued purchase of Russian crude oil amid the Ukraine conflict. The punitive measure, which takes effect from August 27, has sparked a diplomatic flare-up between Washington and New Delhi.
NEW: President Donald J. Trump just signed an Executive Order imposing an additional 25 per centtariff on India in response to its continued purchase of Russian oil.
Here is the text of the Order:
By the authority vested in me as President by the Constitution and the laws of the…
— Rapid Response 47 (@RapidResponse47) August 6, 2025
According to the statement, the executive order was enacted under multiple US statutes, including the International Emergency Economic Powers Act (IEEPA) and Section 301 of Title 3 of the United States Code. Trump cited national interest and international trade violations as the basis for the new tariff measures.
Earlier, President Trump, speaking on CNBC’s Squawk Box, accused India of benefiting from Russian oil at the expense of global efforts to isolate Moscow. “India’s purchasing huge amounts of Russian oil and reselling it on the open market for huge profits… They’re financing the war machine,” Trump explained. He also condemned India’s tariff regime as the “highest in the world” and asserted that the US does “very little business” with India because of these barriers. While India had reportedly offered the U.S. zero tariffs under a pending trade deal, Trump dismissed the offer. “That’s not good enough, not with what they’re doing with Russia,” he said.
What Does The Executive Order say?
The complete Executive Order, August 6, 2025, confirms a 25 per cent ad valorem tariff on all imports from India to be effective 21 days after signing. Only shipments already in transit and a narrow list of exempted items are excluded. The order also authorizes further action against nations found to be indirectly importing Russian oil.
Key features of Trump’s New Executive Order:
• 25 per cent tariff effective August 27, 2025
• Tariffs pile onto existing duties
• Wider action possible if other countries persist with the Russian oil business
• US Commerce and Customs to track and suggest further actions
India And Russia Condemned Trump’s Move
In a statement released before today’s executive order, India’s Ministry of External Affairs (MEA) had outrightly rebuffed criticism regarding its Russian oil commerce. New Delhi referred to continued American and European commerce with Russia, including American purchases of uranium, palladium, and fertilizers, as labeling the attention on India “unreasonable and hypocritical. “Unlike our case, such trade is not even a vital national compulsion,” the MEA said. “India will take all necessary measures to safeguard its national interests and economic security.” India also pointed out that it is one of the fastest-growing large economies, debunking Trump’s previous statements regarding “dead economies” between Russia and India.
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Moscow also had responded in advance to Trump’s threats within the past few days. Kremlin spokesman Dmitry Peskov stated that sovereign states are entitled to choose their economic partners according to national interest. “Sovereign states should have, and do have, the right to choose their trade partners… independently,” Peskov stated. Separately, Russian Foreign Ministry spokeswoman Maria Zakharova blamed the US for pursuing a “neo-colonial policy” to hold onto its dominance in an evolving multipolar world. “Sanctions and restrictions are an unfortunate reality… applied to nations that refuse to toe Washington’s line,” she stated.
While both sides have left the door open for negotiation, Trump has said that even zero tariffs from India will not be enough unless New Delhi halts Russian oil imports. With tensions building and economic costs rising, a full-scale trade showdown now seems probable, unless immediate diplomatic action changes direction in the coming days.