"In response to continued Russian oil purchases," Trump adds 25% additional tariffs on Indian goods

US President Donald Trump signed an executive order on Wednesday, August 6, adding a 25% tariff on Indian products, "in response to the continued purchase of Russian oil," a key source of revenue for Moscow, the White House announced on one of its X accounts. This new surcharge comes on top of the 25% tariff that is due to come into effect on Thursday, at the same time as the tariffs that Donald Trump presents as "reciprocal," and will not be effective for 21 days, according to the order. It will not apply to a number of products, which significantly reduces its scope.

As he had already done several times by threatening India with a "penalty," Donald Trump increased the pressure on the country on Tuesday by assuring that new customs duties would be announced "in the next 24 hours" and at a higher level than previously anticipated. The billionaire will therefore have carried out his threat the very next day, just a few days after having indicated that he would use his trade policy as leverage against Russia to force it to halt its offensive in Ukraine.

As the second-largest buyer of Russian oil, India saves billions of dollars on this discounted crude, which provides Moscow with a vital source of revenue in its military offensive against Ukraine. When the war between Russia and Ukraine erupted in 2022, the country, one of the world's largest crude oil importers, seized the opportunity to buy cheap oil, and imports from Russia surged. Ukraine's Western allies have repeatedly sought to curb Russia's export revenues, but the country has successfully redirected its energy sales from Europe to other countries, notably India and China, ensuring the continuity of this multibillion-dollar capital flow. New Delhi purchased about 1.8 million barrels of Russian crude oil per day in 2024, representing about 37% of Moscow's total oil exports.

"India has not been a good trading partner because they do a lot of business with us, but we don't do business with them. So we agreed on 25 %, but I think I'm going to increase that figure significantly in the next 24 hours because they're buying Russian oil," the US president warned in an interview with CNBC on Tuesday. Before doubling down, he doubled down.

Following the announcement, the Indian Ministry of External Affairs called the US decision " extremely regrettable," deeming it "unfair, unjustified and unreasonable." "Our imports are based on market criteria and have the overall objective of ensuring energy security for India's 1.4 billion people," New Delhi said in a statement. "It is therefore extremely regrettable that the United States chooses to impose additional customs duties on India for actions that several other countries are also taking in their own national interest."

"We hear a lot of statements that are practically nothing more than threats and attempts to force countries to end their trade relations with Russia," Kremlin spokesman Dmitry Peskov said at a press briefing, deeming these statements "illegitimate." "We believe that sovereign countries have the right to choose their own trading partners," he added, before Donald Trump decided to force the Indian government's hand anyway.

Updated at 6:50 p.m. with response from the Indian Ministry of External Affairs.