NextFin news, On Wednesday, September 24, 2025, the United States government announced a new tariff measure targeting India, imposing an additional 25% tariff on Indian imports linked to the purchase of Russian oil. This announcement was made by US Treasury Secretary Scott Bessant, who called on G7 allies to support the US-led campaign to penalize countries continuing to buy Russian crude.
Secretary Bessant emphasized the importance of sanctions and tariffs as tools to pressure Moscow amid the ongoing conflict in Ukraine. He stated, “If our partners are truly committed to ending the war in Ukraine, they must join the United States in imposing tariffs on countries that continue buying oil from Russia.”
The new 25% tariff on India doubles the previous 25% tariff imposed during the Trump administration, bringing the total US tariff on Indian goods related to Russian oil to 50%, the highest level imposed by the US on any trading partner. India is one of the largest buyers of Russian crude, and US officials argue that these purchases indirectly finance Russia’s war efforts.
In addition to the tariff announcement, Secretary Bessant criticized the recent Shanghai Cooperation Organization (SCO) meeting held in China, describing it as a “sham” and highlighting concerns over India’s role in supporting Russia through its oil purchases. He warned that continued support for Russia by India and China could prompt stronger US and allied responses.
Despite these tensions, US President Donald Trump and Indian Prime Minister Narendra Modi have signaled optimism about ongoing trade negotiations. On September 10, President Trump posted on Truth Social about continuing talks to address trade barriers, expressing a positive outlook on the India-US partnership. Prime Minister Modi echoed this sentiment on social media platform X, calling India and the US “close friends and natural partners” and expressing confidence in a mutually beneficial outcome.
The US Treasury Department also noted commitments from G7 countries to strengthen sanctions and use frozen Russian assets to support Ukraine. Officials expressed encouragement at signs of stronger collective action among G7 members during this critical period.
This tariff escalation underscores the complex dynamics in India-US relations, balancing strategic cooperation with disagreements over energy trade and sanctions enforcement. While both countries continue to collaborate on defense, technology, and clean energy, the increased tariff burden may test the resilience of their economic ties in the near future.
Sources: INVC News (https://internationalnewsandviews.com/us-g7-tariffs-russia-oil-buyers-india-388979-2/), Hindustan Times (https://www.hindustantimes.com/india-news/indiaus-ties-remain-critical-hope-to-fix-tariffs-says-marco-rubio-101758652714056.html), The Indian Express (https://indianexpress.com/article/explained/explained-economics/india-us-trade-negotiations-what-next-10266089/)
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