India slams US over new 25% tariff hike, terms it 'unfair, unreasonable'

India has issued a strong condemnation of the United States' decision to impose an additional 25% tariff on Indian goods, calling it an "unjustified" and "disproportionate" response to New Delhi’s continued energy imports from Russia.

The decision by U.S. President Donald Trump, announced via executive order on Wednesday, marks a sharp escalation in trade tensions between the two countries. With this move, the total U.S. tariff on Indian imports now stands at 50%, higher than those levied on goods from China or Pakistan.

In a firm statement released by the Ministry of External Affairs, India defended its energy policy, stating that oil imports are determined by market dynamics and are vital to the country’s energy security.

“Our crude imports are driven by national interest, aimed at meeting the energy needs of 1.4 billion people. Penalizing us for this is both counterproductive and unfair,” the statement read.

President Trump defended the new tariffs by accusing India of "fueling Russia’s war machine" in Ukraine. In his executive order, he alleged that India was “directly or indirectly importing oil from the Russian Federation”, despite global calls to reduce support for Moscow amid its ongoing military actions in Ukraine.

“If countries continue to finance Russia through energy purchases, they are complicit,” Trump said. “India is buying cheap oil, profiting from it, and undermining our collective efforts to isolate Putin’s regime.”

He also hinted that similar trade penalties could be applied to other nations that maintain or expand their energy relations with Russia.

India’s foreign ministry labeled the move as a “violation of international trade norms” and signaled that retaliatory measures were under consideration. Officials stressed that Western nations, including the U.S. and Europe, had earlier encouraged India to play a stabilizing role in global energy markets following the Ukraine war.

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“It is hypocritical to now penalize us for fulfilling that role,” the spokesperson said, alluding to the fact that several Western countries also continued indirect energy trade with Russia during early phases of the conflict.

The new tariff hike is likely to have wide-reaching economic implications, especially for Indian exports such as textiles, pharmaceuticals, automotive parts, and IT equipment, which make up a significant portion of trade with the U.S.

Experts warn that this diplomatic row could further derail India-U.S. trade negotiations, including talks on a much-anticipated bilateral trade agreement that has been in limbo for years.