US President Announces Secondary Sanctions against India

On 6th August 2025, U.S. President Donald Trump announced the imposition of more secondary sanctions and confirmed a fresh 25% tariff on all Indian goods entering the United States, escalating trade tensions between the two nations.

Key Points

Tariff Hike: US President signed an executive order on Wednesday imposing an additional 25% tariff on Indian goods, effective from August 27. This is in addition to the 25% announced the previous week, effectively doubling the duty to 50%.
India’s Response: India condemned the move as “unjustified and unreasonable,” and accused the U.S. and EU of selectively penalizing India for engaging in trade with Russia, while overlooking similar actions by other countries.
Strategic Context: The penalties are linked to India’s continued purchase of Russian oil and military equipment. Meanwhile, China — a larger importer of Russian and Iranian oil — has received a 90-day tariff pause.
Economic Impact: The new tariffs place Indian exporters at a steep disadvantage compared to peers in countries like Bangladesh, Indonesia, and Vietnam, which face lower tariff rates of 19–20%.
Geopolitical Tensions: The move adds to a growing list of disputes between the U.S. and India over trade, energy policy, and strategic alignment amid global sanctions on Russia.