US President Donald Trump on Wednesday issued an executive order imposing an additional 25% tariff on goods imported from India, escalating tensions between the two countries. The move comes days after Trump accused India of indirectly supporting Russia’s war in Ukraine by buying large volumes of Russian oil and reselling it for profit.

“India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,” Trump said earlier this week in a social media post. “They don’t care how many people in Ukraine are being killed by the Russian war machine.”

Trump had warned on Monday that he would “substantially” raise tariffs on India, citing both the oil trade and what he called India’s “strenuous and obnoxious” trade barriers. The executive order issued on Wednesday formalises that threat, introducing a 25% tariff on a wide range of Indian exports to the US.

Last week, the former president launched a scathing attack on India and Russia, saying the two nations could “take their dead economies down together.” The remarks sparked a sharp response from India, which defended its economic trajectory and trade practices, asserting its status as the world’s fastest-growing major economy.

Citing the long-standing US trade deficit with India, Trump has also criticised India’s military and energy ties with Russia, calling them inconsistent with global efforts to isolate Moscow.

With this latest executive order, Washington’s economic stance toward India appears to be hardening, potentially impacting billions of dollars in bilateral trade.
(With Reuters inputs)