The US has intensified trade pressure on India by announcing a sharp increase in tariffs on key exports, citing India's continued purchases of Russian oil. On August 6, 2025, Washington declared that duties on select Indian products will rise from 25% to 50%, with the new rates coming into force after a 21 day window, according to an executive order signed by US President Donald Trump, the BBC reported.

The move targets a wide range of Indian exports including textiles, footwear, gems, jewellery and pharmaceuticals, which collectively made up a significant portion of the $76bn in goods India shipped to the US in 2024. Indian exporters could face a 30–35% cost disadvantage against competitors from Vietnam, Bangladesh and Japan. Pharmaceuticals are likely to bear the brunt, with US duties in this segment potentially climbing to 250% within 18 months.

Officials from the US administration linked the decision directly to India's reluctance to scale back Russian crude imports, suggesting such purchases indirectly aid Moscow’s military campaign in Ukraine. Meanwhile, the Russian government voiced support for New Delhi, characterising Washington’s actions as coercive. However, the 21 day buffering window could provide ample time for a deescalation and repeal of the tariffs if the US and India engage and try to reach some form of compromise.

President Trump had previously imposed a 25% tariff rate on India solely for its trade policies towards the US which came into force on August 2, but threatened to impose further punitive measures specifically for buying Russian hydrocarbons - which has now translated into the tarrif rate being doubled to 50%.

The government of India responded via a press release late on August 6, calling the US move unjustified and inconsistent, pointing out that several countries continue trading with Russia. Although no retaliatory measures are currently planned, the Indian government said it will exercise all options to secure its national interests.