What Trump said while imposing 25% additional tariff on India; total tariff now 50%
US President Donald Trump has signed a new order that adds 25% more tax on goods from India. He said this is because India is still buying oil from Russia. This additional tax will start on August 27.
Earlier, on July 30, Trump had already announced a 25% tax on Indian imports. Now, the total tax on Indian goods coming to the US will be 50%.
Trump accused the Indian government of buying oil from Russia, which he believes helps Russia continue its war in Ukraine. He warned that India’s oil trade with Russia was a problem, and the US would take strong action.
The additional tax will apply to all Indian goods starting August 27, but some items that are already on their way or have arrived before a certain date will be exempted.
US imposed a ban on import of Russian oil and other products in March 2022
In March 2022, the US imposed a ban on import of Russian oil and related products. The Trump administration said India’s oil purchases go against that ban and hurt efforts to pressure Russia economically.
The decision could increase tensions between the US and India, especially regarding trade.
Trump also said he might impose a very high tax of 250% on medicines imported from India. He plans to start with a smaller tax that could grow to 150% and then to 250% over 18 months. Trump criticized India for having high tariffs and said that the US relies too much on countries like India and China for medicine supplies.
Tax could significantly affect India's pharmaceutical industry
The proposed tax could significantly affect India's pharmaceutical industry, as India is a major supplier of medicines and vaccines to the US. In 2025, India exported over $7.5 billion worth of pharmaceutical goods to the US, and about 40% of all generic drugs in the US come from India.
These new tariffs come as trade tensions rise between the US and India, especially after the recent order regarding oil trade.
Prakash Kumar Pandey