Will take actions to protect interest: India after Trump imposes 50% tariff

Labeling the tariff hike "unfair, unjustified, and unreasonable," India said it is being penalised for decisions also made by several other countries in their own national interest

Soon after United States President  Donald Trump on Wednesday announced an additional 25 per cent tariff on goods imported from India, the Ministry of External Affairs said it will take all necessary steps to safeguard the country’s national interests.

 

“The United States has in recent days targeted India’s oil imports from Russia. We have already made our position clear. Our imports are guided by market factors and are aimed at ensuring the energy security of 1.4 billion people of India,” the ministry said.

 

It further added that it is “extremely unfortunate” that the US has chosen to penalise India for decisions that are similarly being made by several other countries in their own national interest. The ministry called the move “unfair, unjustified, and unreasonable", adding that India will take all necessary measures to safeguard its national interests. 

 

The statement comes after Trump signed an executive order imposing an additional 25 per cent tariff for purchasing Russian crude oil. “The Government of India is currently directly or indirectly importing Russian Federation oil,” the order read.

 

It added that “indirect” imports include buying Russian oil via intermediaries or third countries, as long as the oil’s origin can be reasonably linked back to Russia. The duty will be effective from August 27, which is 21 days from the signing of the order.

 

Trump had imposed a 25 per cent tariff on India last week, and with the latest hike, the total now stands at 50 per cent.

 

India and the US have conducted five rounds of discussions from March to July 2025, with the upcoming round planned to take place later this month in India. India’s statement on Wednesday, however, did not address the status of ongoing talks or outline how the two countries will proceed moving forward.

 

Experts warn of economic impact and growth risks

 

Economists have warned that the tariff hike by the US could significantly affect India’s exports, competitiveness, and gross domestic product (GDP) growth. Sakshi Gupta of HDFC Bank said failure to reach a deal within 21 days may force a downward revision of India’s FY26 GDP growth forecast to below 6 per cent.

 

Meanwhile, Gaura Sen Gupta, economist at IDFC First Bank, said that the tariff hike poses a downside risk of 0.3-0.4 per cent to India’s GDP if it persists till March 2026.

 

Other experts highlighted the disadvantage for Indian exports compared to countries facing lower tariffs and increased pressure on India to reduce Russian oil purchases.