On August 27, 2025, the United States, under the administration of former President Donald Trump, imposed steep tariffs of up to 50% on imports from India. This move comes as a punishment for India’s increased purchases of discounted Russian oil following the Ukraine war. India had saved billions of dollars through these imports; however, the new U.S. tariffs threaten to wipe out these gains.
These tariffs are among the highest the U.S. has ever charged and have sparked concerns over the future of India-U.S. trade relations. Experts suggest that this decision may:
- Endanger relations between the two countries
- Impact consumers due to raised costs of goods
India’s Prime Minister Narendra Modi responded by emphasizing the need to “make and spend in India,” signaling a push for domestic manufacturing and possible economic reforms to counter the tariffs.
The tariffs also come at a challenging time when over half of India’s exports to the U.S. are affected. The move has been described as a lose-lose situation for both India and the U.S., while inadvertently benefiting Russia, which continues to supply oil to India.
Related Developments
In related developments, there are reports of discussions between U.S. and Russian officials on re-entering Exxon Mobil into Russia’s Sakhalin-1 oil project, highlighting complex geopolitical ties.
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