Tensions between India and the United States have escalated as the Trump administration issued a draft notice outlining plans to implement a 50% tariff on Indian goods starting August 27, 2025.
The increased levies are aimed at penalising India for continuing to purchase Russian crude, part of the US effort to pressure Moscow amid stalled peace talks with Ukraine. Vice President JD Vance described India’s inclusion in the secondary sanctions framework as part of a broader strategy to weaken Russia’s oil economy.
Reacting to the announcement, Prime Minister Narendra Modi asserted in Ahmedabad that India would not compromise on the interests of farmers, small-scale industries, and domestic producers.
Urging citizens to prioritise swadeshi goods, Modi linked India’s resilience to the values of Mahatma Gandhi and Lord Krishna. Meanwhile, President Trump expanded his trade threats to countries enforcing digital taxes and tech regulations, warning of “substantial additional tariffs” and export restrictions unless such measures were withdrawn. India has stood firm on its energy choices, continuing engagement with Moscow and Beijing to safeguard national economic interests.
