SF Prep Notes

US imposes additional 25% tariff on Indian goods over Russian oil; India calls it 'unfair, unjustified and unreasonable'

US President Donald Trump signed an executive order on 6 August 2025 imposing an additional 25% tariff on Indian goods over India's imports of Russian oil, and India's Ministry of External Affairs called the move 'unfair, unjustified and unreasonable'.

Summary

The United States imposed an additional 25% tariff on goods from India through an executive order signed by President Donald Trump on 6 August 2025, citing India's purchases of Russian oil; the extra duty was to take effect 21 days later, on top of a 25% rate effective from 7 August, taking the total to 50%, according to reports. India's Ministry of External Affairs said the same day that India's oil imports are based on market factors and aimed at ensuring the energy security of 1.4 billion people. It called it extremely unfortunate that the US should impose additional tariffs for actions that several other countries are also taking, described the measures as 'unfair, unjustified and unreasonable', and said India will take all actions necessary to protect its national interests.

Key facts

Date
6 Aug 2025, US executive order
Measure
Additional 25% tariff on Indian goods
Reason cited
India's imports of Russian oil
Timing
Effective 21 days later; existing 25% rate from 7 Aug
Combined rate
50% (reported)
MEA response
'Unfair, unjustified and unreasonable'
India's position
Imports market-based, for energy security of 1.4 billion people

Practice MCQs 3 questions

Q1

What additional tariff did the US impose on Indian goods through the executive order of 6 August 2025?

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Correct answer: C — 25%

The executive order imposed an additional 25% tariff on Indian goods over India's purchases of Russian oil, taking the combined rate to 50%.

Q2 Advanced

How did India's Ministry of External Affairs describe the additional US tariffs in its statement of 6 August 2025?

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Correct answer: A — Unfair, unjustified and unreasonable

The MEA said: 'We reiterate that these actions are unfair, unjustified and unreasonable.'

Q3 Advanced

Consider the following statements about India's response to the US tariff order of 6 August 2025: 1. India said its oil imports are based on market factors and aimed at the energy security of 1.4 billion people. 2. India said it would take all actions necessary to protect its national interests. Which of the above is/are correct?

Show answer

Correct answer: C — Both 1 and 2

Both statements are correct. The MEA said India's imports are based on market factors to ensure the energy security of 1.4 billion people, and that India will take all actions necessary to protect its national interests.

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