India has lodged a fierce diplomatic response to U.S. President Donald Trump’s executive order unveiled on August 6, 2025, imposes a further 25% tariff on Indian goods raising the total U.S. duty on exports from India to 50%.
In a strongly worded statement, India’s Ministry of External Affairs called the move “extremely unfortunate” and stated unequivocally that the country will “take all actions necessary” to protect its national interests and energy security. Senior officials emphasized that India’s decisions on importing Russian oil are driven by market realities and aimed at securing affordable energy supplies for its 1.4 billion people.
The escalation reflects growing trade friction over India’s continued reliance on Russian crude, which now constitutes nearly 40% of its oil imports. Though the U.S. imposed previous tariffs earlier in the summer, this new penalty is explicitly tied to India’s energy ties with Moscow and is effective 21 days after the order’s signing.
Indian exporters fear this dramatic levy will devastate key sectors such as textiles, gems and jewellery, leather, marine products, and footwear. Analysts predict exports to the U.S. could decline by 40%–50%, rendering India one of the most heavily taxed exporters in the American market. Notably, industries like pharmaceuticals and electronics are exempted from the new levy, but many small and medium exporters are unable to absorb the impact.
Prominent business leaders and political figures echoed New Delhi’s defiant stance. Industrialist Harsh Goenka remarked on social media: “You can tariff our exports, but not our sovereignty”, adding that India will strengthen self‑reliance and seek alternative trade strategies. Opposition figure Rahul Gandhi called the 50% tariff “economic blackmail” designed to force India into an unfair trade deal.
Despite the intense escalation, trade mediators from the Trump administration are expected to visit Delhi around August 25, potentially offering a narrow window for diplomatic resolution if India agrees to reduce Russian oil imports in a phased manner or concede in agricultural market access.
With India demanding respect for its sovereignty and energy priorities, the coming weeks will be critical. The standoff exposes the fragility of U.S.-India trade relations amid global realignments, and tests India’s resolve as it juggles international pressure and domestic imperatives in a shifting geopolitical landscape.