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Why US Tariff Sledgehammer Approach with India Can Prove Counterproductive

UNITED STATES, AUG 10 – Trump considers tariffs on China for $10 billion in Russian oil imports amid complex US-China ties, following a 50% tariff imposed on India for similar imports.

  • U.S. President Donald Trump issued a new executive order that adds a 25% tariff on Indian goods due to India’s purchases of Russian oil, increasing the overall tariff rate to 50%, which will take effect on August 27, 2025.
  • The tariffs respond to India's purchase of nearly 40% of its oil from Russia, which rose from 0.2% before the Ukraine invasion to 36% of its needs now, amid India's longstanding strategic ties with Moscow.
  • In response, Indian refiners have ceased purchasing Russian crude on the spot market and have arranged to import over 22 million barrels of alternative oil from other sources, while India condemned the tariffs as unfair, unjustified, and unreasonable, pledging to safeguard its national interests.
  • Vice President J.D. Vance stated on August 10, 2025, that tariffs on China are "on the table" but no decision has been made, and President Trump favors oil prices near $50 per barrel to balance market and political concerns.
  • The 50% tariff could push India to reduce Russian oil imports, potentially raising global oil prices and straining U.S.-India relations, with experts expecting eventual compromises given India’s limited oil storage and strategic ties with Russia.
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India Today broke the news in India on Sunday, August 10, 2025.
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