India Faces 50% Tariffs Over Russian Oil Imports, Modi Stands Firm
The United States has officially issued a notice to India regarding the implementation of additional tariffs set to take effect from August 27, 2025, marking a significant escalation in the Trump administration's strategy to address what it characterizes as "threats to the United States by the Government of the Russian Federation." The move represents the first major use of secondary tariffs to pressure Russia's trading partners since President Trump returned to office.
The Department of Homeland Security issued the formal notice implementing President Trump's Executive Order 14329, which authorizes the imposition of an additional 25 percent ad valorem duty on Indian imports, bringing the total tariff rate to 50 percent when combined with the existing 25 percent "reciprocal" tariffs.
India's Role in Russian Energy Trade
India has emerged as Russia's second-largest oil customer since the Ukraine invasion began in 2022, significantly increasing its imports of Russian crude oil. In 2024, India imported approximately $52.73 billion worth of crude oil from Russia, according to UN trade data. Russia currently accounts for about 34-36 percent of India's total oil imports, making it the country's largest oil supplier, followed by Iraq and Saudi Arabia.
Recent data indicates that India's Russian oil imports are already showing signs of decline. Russian crude exports to India have plunged threefold in August 2025, with average daily shipments falling to just 400,000 barrels per day from the 1.18 million barrels per day average maintained throughout the year.
The Alaska Summit and Stalled Peace Negotiations
The tariff implementation comes against the backdrop of failed peace negotiations between Russia and Ukraine. President Trump hosted Russian President Vladimir Putin at Joint Base Elmendorf-Richardson in Alaska on August 15, 2025, marking the first meeting between the leaders since Russia's invasion of Ukraine. However, the summit ended without any agreement, with the scheduled six-hour meeting concluding after only three and a half hours.
Following the Alaska summit, Trump expressed frustration with the lack of progress, stating that responsibility for peace now fell on Ukraine and warning of "severe consequences" for Russia if no ceasefire materialized. The stalled negotiations have reinforced the Trump administration's commitment to implementing the secondary tariffs as leverage to force Moscow to the negotiating table.
Prime Minister Modi's Stern Response
Prime Minister Narendra Modi and Indian officials have strongly condemned the additional tariffs as "unfair, unjustified and unreasonable." Modi delivered a stern message on August 26, stating that India would not compromise on the interests of farmers and small businesses and would continue to protect its national interests. Speaking at a public address in Ahmedabad, Modi emphasized India's resilience, declaring: "No matter how much pressure comes, we will keep increasing our strength to withstand it."
“My government will never let any harm come to the small entrepreneurs, farmers, and animal keepers. No matter how much pressure comes, we will keep increasing our strength to withstand. Today, the Atmanirbhar Bharat Abhiyan is getting a lot of energy from Gujarat and behind this are two decades of hard work," PM Modi said.
Indian officials have characterized the US move as "extremely unfortunate" and have maintained that New Delhi will continue purchasing Russian oil based on its energy security needs. India has also pointed out the selective nature of the tariffs, noting that China—Russia's largest oil customer—has not faced similar penalties despite purchasing even larger volumes of Russian energy.