President Donald Trump has imposed an additional 25% tariff on top of the existing one. The White House has confirmed this latest move, stating that the additional tariff is a response to India’s pushback against Trump’s remarks and its continued purchase of Russian oil. This is going to be effective from August 27, the White House declared.
The executive order states that the tariff is being imposed because of India’s “direct or indirect import of Russian Federation oil.” According to President Trump, this move is necessary and the most effective way to respond to what he calls a national emergency.
With this new tariff, India-U.S. trade talks are likely to heat up. There’s a 21-day buffer before the additional 25% duty kicks in, giving India a narrow window to potentially work out a deal and ease the pressure.
READ: US-India trade deal to be struggling under looming tariffs deadline (July 4, 2025)
Trump had previously asked the Indian government to reduce ties with Russia, specially in regard of trade. President Trump had urged New Delhi to hold back its defense and energy dealings with Moscow. “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote in the social media post.
“Because of this, I will be substantially raising the tariff paid by India to the USA,” Trump added.
In response, India had backed Russia and stated that, “the targeting of India is unjustified and unreasonable.” And India will “take all necessary measures to safeguard its national interests and economic security.”
Now, this additional tariff hike follows behind-the-scenes efforts by Trump’s top diplomat Steve Witkoff, who was recently in Moscow trying to get Russia on board with a peace deal in Ukraine. Besides, the president had threatened higher tariffs on Russia along with their allies if it does not cease war.
READ: Eric Garcetti’s revelation adds fuel to India-US trade clash (August 5, 2025)
According to Reuters, India, being the world’s third-largest oil importer and consumer, has kept Russian oil flowing steadily into its ports. Between January and June this year, it imported around 1.75 million barrels per day which is slightly more than the same period last year. Russia remained India’s top supplier through these months, making up about 35% of total oil imports. These purchases picked up pace after 2022, when Western sanctions kicked in following Russia’s invasion of Ukraine. In June, India ramped up its Russian oil imports by over 17%, touching nearly 2 million barrels per day. Most of this came through private refiners, who accounted for almost 60% of the purchases in the first half of 2025, many of them bound by annual contracts with Moscow and emerging as the biggest buyers in the country. The rest was picked up by India’s four state-run refiners, who together handle more than 60% of the nation’s refining capacity.
But by late July, that picture began to shift. With discounts on Russian oil shrinking and pressure mounting from Trump’s fresh tariff threats, state refiners had quietly paused their Russian buys, according to the sources who told Reuters.