US stuns India with massive tariff as ties hit new low

US President Donald Trump on Wednesday imposed an additional 25 per cent tariff on Indian goods, citing New Delhi’s continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock. The new import tax, set to come into place in three weeks, will raise duties on some Indian exports to as high as 50pc — among the highest levied on any US trading partner. Trump’s executive order imposing the extra tariff did not mention China, which also imports Russian oil. A White House official had no immediate comment on whether an additional order covering those purchases would be forthcoming. Analysts said Mr Trump’s move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India’s access to its largest export market, where shipments totalled nearly $87 billion in 2024, hitting sectors like textiles, footwear, gems and jewellery.