US-India trade tension further escalates, as Washington raises tariffs on Indian goods to 50%

This photo taken on May 10, 2025 shows cargo ships loaded with containers at the Port of Los Angeles in California, United States. (Photo by Qiu Chen/Xinhua)

Growing trade tension between the US and India marked another escalation on Wednesday, as the White House announced that it is imposing an additional 25 percent tariff on India, bringing the total levies against the South Asian country to 50 percent.

US President Donald Trump signed an executive order for the move. "I find that the Government of India is currently directly or indirectly importing Russian Federation oil," Trump said in the executive order. "Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent," reads the executive order posted on the White House's website.

The new tariffs are set to go into effect in 21 days, according to the executive order.

The US' new tariff rate on India is now among the highest levy on all of the United States' trading partners, according to CNBC. Trump had previously threatened to impose an additional 25 percent tariff on imports from India, in addition to a "penalty" over the country's purchase of military equipment and energy from Russia, CNBC reported.

Indian Prime Minister Narendra Modi has taken a defiant stance against Trump's tariff warnings, encouraging people to buy locally made products. He also said India is positioned to become the world's third-largest economy, so it must remain vigilant in terms of economic interests, the Xinhua News Agency reported on Wednesday.

In response to Trump's earlier threat, India's Ministry of External Affairs also said in a statement that "the targeting of India is unjustified and unreasonable," and that India's oil imports are meant to "ensure predictable and affordable energy costs" for Indian consumers, according to a separate Xinhua report on Tuesday.

India and the US have been locked in negotiations over a trade deal to reduce Trump's tariffs, but have yet to agree on a pact, even though New Delhi has cut tariffs on several US imports, per Xinhua.