27 Aug 2025, 07:08
Trump Introduces 50% Tariff on Imports from India via Russian Oil
- Trump has introduced a 50% tariff on imports from India via Russian oil.
- India plans to continue purchasing Russian oil regardless of the tariff.
- Modi will attend the summit in China, which may improve relations with Beijing.
President of the USA Donald Trump has introduced a 50% tariff on the majority of imported goods from India, fulfilling his promise to target this country for reduced purchases of Russian oil. This tariff came into effect on September 27, 2025, and could significantly harm the Indian economy, as well as further disrupt global supply chains.
Earlier this month, Trump had set a base tariff of 25% on Indian goods, but decided to raise the rate, citing purchases by India of Russian oil, which, according to the words of the Biden administration, indirectly finances the war in Russia against Ukraine. This decision leaves Indian exporters with the highest tariffs that Trump imposed on goods across the board.
Indian officials assert that the country was unfairly targeted, and point to the possibility of strengthening ties with Moscow and Beijing as a result of this action. Most Indian goods exported to the USA total $87.3 billion in the previous year, but now face high tariffs, including some key products, such as smartphones, which may soon be exempted.
Economists predict that the continued application of the tariff at 50% may lead to a decrease in the growth rates of India's gross domestic product below 6%. At the same time, other countries like Brazil and Turkey may capitalize on the situation, offering American buyers cheaper goods.
In response to Trump's actions, Indian Prime Minister Narendra Modi has urged compatriots to buy only domestic products, stressing that the country has no intention of halting the purchase of Russian oil.
Meanwhile, the trade relations between India and China are beginning to decline. Modi will attend the summit at the Shanghai Cooperation Organization, which may signal a new phase in relations between the two countries. This summit will be the largest in terms of participation of world leaders, including Russian President Vladimir Putin and other representatives of Central Asia.
The decline in trade between India and China may be driven not only by the desire of both countries to stabilize their relations, but also by pressure from the USA. Currently, experts believe that changes will not lead to a radical overhaul of power dynamics in the region.
Notwithstanding serious challenges related to tariffs, both countries continue to seek avenues for cooperation.
Tags: USA/Politics/Economy