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New US tariffs on India come into effect

Aug 27, 2025, 6:54am EDT
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U.S. President Donald Trump meets with Indian Prime Minister Narendra Modi.
Kevin Lamarque/File Photo/Reuters

Hefty new US tariffs came into effect against India, part of efforts to drive New Delhi from Moscow which have thus far had the opposite effect.

The 25% levy is intended as punishment for India’s purchases of Russian oil, and sits atop an existing 25% duty. Indian experts have noted that the tariffs are significantly higher than those against US rivals like Beijing, and rather than pulling New Delhi from Moscow, have instead driven efforts to improve ties with both China and Russia.

Domestically, meanwhile, the levies have spurred an economic reform drive and pushed Indian firms to seek markets: “The Trump regime is, willy-nilly, helping India,” The Economic Times, a major Indian business outlet, argued in an editorial.

A table showing trade dynamics between India and the US.
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