Trump Hikes India Tariffs Over Russian Oil as Trade Deadline Looms

AFP/APP

Washington: US President Donald Trump on Wednesday ordered a steep increase in tariffs on Indian goods, citing New Delhi’s continued purchases of Russian oil — escalating tensions just hours before another wave of global trade duties is set to take effect.

The new measure imposes an additional 25-percent tariff on Indian imports, which will take effect in three weeks. This stacks on top of a separate 25-percent duty already scheduled to begin Thursday, effectively raising the tariff rate to 50 percent on a wide range of Indian products.

Trump’s order also warned of penalties against other countries that “directly or indirectly” import Russian oil — a key source of funding for Moscow’s war in Ukraine.

However, exemptions remain for sector-specific goods such as steel and aluminum, and for categories that may be targeted later, including pharmaceuticals and semiconductors. Smartphones are also currently exempt — a move that spares tech giant Apple as it shifts manufacturing from China to India.

India’s Ministry of External Affairs condemned the tariff hike, calling it “unfair, unjustified, and unreasonable.” The ministry previously stated that India turned to Russian oil only after traditional suppliers redirected shipments to Europe in response to the war, a move that was “actively encouraged” by Washington to stabilize global energy markets.

Still, Trump has ratcheted up pressure on India in recent weeks over its Russian oil imports, threatening punitive measures as part of a broader campaign to force Moscow to end its invasion of Ukraine.

Coinciding with Wednesday’s announcement, India’s National Security Adviser was reportedly in Moscow, while U.S. envoy Steve Witkoff held talks in New Delhi — underscoring the high-stakes diplomatic maneuvering underway.

While the newly announced tariff is lower than the 100 percent rate Trump floated last month, it marks a significant escalation. In July, Trump issued an ultimatum to Russia, demanding it end the war within 50 days or face sweeping new sanctions, including “secondary tariffs” targeting its remaining trade partners.

“This marks a low point in U.S.-India relations,” said Farwa Aamer, Director of South Asia Initiatives at the Asia Society Policy Institute.

“There will be growing domestic pressure for India to comply with U.S. demands, but it will be a tough road to navigate,” she added.

Tariff Turmoil Spreads Globally

Trump’s trade offensives aren’t limited to India.

The U.S. president also targeted Brazil on Wednesday over the ongoing trial of former Brazilian President Jair Bolsonaro — a Trump ally accused of plotting a coup. As a result, U.S. tariffs on Brazilian goods jumped from 10 percent to 50 percent, though key sectors such as orange juice and civil aircraft received exemptions to cushion the blow.

Brazil responded swiftly, initiating formal dispute proceedings at the World Trade Organization (WTO), government sources told AFP.

Meanwhile, a new wave of tariffs impacting dozens of other economies — including the European Union, Taiwan, and Japan — is set to kick in Thursday. These updated “reciprocal” tariffs are aimed at addressing what Washington calls unfair trade practices and will rise up to 41 percent for Syria.

Countries currently facing a 10-percent tariff will see rates increase, starting at 15 percent for allies like the EU, Japan, and South Korea. Nations not affected by the reciprocal hikes will continue facing the original 10-percent levy introduced in April.

In a rush to avoid harsher penalties, several world leaders have made last-minute efforts to negotiate. Swiss President Karin Keller-Sutter was in Washington ahead of Thursday’s deadline, though it remained unclear whether she would meet Trump or any senior U.S. economic officials.

Switzerland’s pharmaceutical sector has been spared from a 39-percent duty — for now. But Trump has warned that future pharmaceutical tariffs could soar to 250 percent, signaling continued unpredictability in U.S. trade policy.

Japan’s tariffs envoy Ryosei Akazawa also visited Washington seeking clarification on a prior agreement to cut auto import duties from 25 to 15 percent. A U.S. official indicated that tariffs on other Japanese goods would not be capped at 15 percent, and would be added on top of existing duties.

Though Japan narrowly avoided further tariffs in a July deal, tensions remain over issues such as Japanese investments of $550 billion in the U.S.

“That’s like a signing bonus that a baseball player would get,” Trump said Tuesday in an interview with CNBC.

“It’s our money to invest as we like.”

Legal experts say many of Trump’s sweeping tariffs may face court challenges over his use of emergency economic powers, with several cases expected to reach the U.S. Supreme Court.