Trump Imposes Extra Tariff on India Over Russia Oil Ties

President Donald Trump imposed a 25% tariff on Indian goods after five rounds of trade talks failed to deliver results.

The sudden move shocked New Delhi, which had hoped to secure a favorable deal before the August 1 deadline.

Trump’s executive order, signed on Wednesday, August 6, accused India of importing Russian oil directly or through backdoor channels.

According to the White House, the tariff will take effect on August 27.

Indian officials privately expressed deep frustration over the development and accused Washington of pulling out at the last moment.

They said months of negotiations had produced near-complete technical agreements on most issues.

“We were confident the deal was done,” one senior Indian official said. “Trump was supposed to announce it himself.”

However, the expected announcement never came, and instead, Trump turned toward other global partners.

Meanwhile, Washington secured deals with Japan, the European Union, and Pakistan — India’s longtime regional rival.

U.S. officials said political mistakes, missed signals, and mistrust ultimately destroyed any chance of a successful outcome.

Indian negotiators had hoped to cap tariffs at 15% and expected final terms before the deadline passed.

But time ran out. India received a harsher deal than rivals and no formal closure.

The failure now puts more than $190 billion in annual bilateral trade under threat.

Furthermore, it creates new roadblocks just as both countries sought stronger Indo-Pacific partnerships.

Trump’s order clearly blamed India’s oil trade with Russia, calling it a violation of Western sanctions.

The U.S. accused India of helping finance the Russian war effort by purchasing discounted crude through middlemen.

“The United States will not tolerate backdoor financing of Russia,” the White House said.

So far, India’s government has not officially responded to the new tariffs or the accusations.

However, experts believe retaliation is likely and could target U.S. agricultural and technology exports.

Both India and the U.S. now face rising domestic pressure ahead of their upcoming elections.

Moreover, global markets could feel the ripple effects as supply chains continue to strain under geopolitical pressure.

While diplomacy may resume, analysts warn that the trust needed to finalize a deal has already collapsed.

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