U.S. President Donald Trump signed an executive order imposing an additional 25% tariff on imports from India, citing India’s continued purchase of Russian oil as justification.
This escalates the total U.S. tariff rate on Indian goods to 50%.
The order takes effect on August 27 and represents a broader U.S. policy targeting nations supporting the Russian economy amid the Ukraine conflict.
India’s government condemned the move as “unjustified and unreasonable,” highlighting Western double standards given ongoing EU and U.S. energy trade with Russia.
Market impact was immediate: the iShares MSCI India ETF continued a six‑week losing streak amid surging concern and investor sentiment decline.
Analysts view this as a strategic escalation in U.S.-India trade relations, with potential ripple effects across key export sectors, particularly pharmaceuticals and automobiles.
