Will India fold under U.S. pressure?

On August 6, 2025, U.S. President Donald Trump signed an executive order that slapped an additional 25% tariff on Indian goods. That boosts the total U.S. tariff on Indian imports to 50%. The justification? India keeps buying Russian oil despite U.S. pressure. Trump claims that's indirectly funding the Ukraine war. These are called secondary tariffs—punitive measures meant to punish third-party trade, not just direct U.S.–Russia exchange.
The new 50% rate kicks in 21 days after August 7, i.e. around August 28, with exceptions for goods in transit arriving before September 17.

What is at Stake:
Key Indian export sectors—textiles, jewelry, footwear—are in the crosshairs. Analysts warn about MSMEs (micro/small exporters) being wiped out; roughly 55% of Indian shipments to the U.S. could become unviable. India’s pivot to China, rising defiance over U.S. demands, and its historic Russia ties are putting the once‑warm U.S.–India partnership on life support.

What India reacting so far:

India calls the U.S. move “unfair, unjustified and unreasonable.” It says other countries also buy Russian oil—but aren't punished like this. Imports are driven by energy needs for 1.4 billion people. Some opposition leaders in India accuse Prime Minister Modi of allowing U.S. "bullying." Others warn reducing Russian oil could make Modi look like he caved.

How to think about this:

Think of it like a deranged sibling: Trump says “You traded with our enemy, so I’m charging you double.” India replies, “Hold up—I needed oil to keep our lights on.”
It’s a classic tough‑love move: plus‑ultra punishment for a strategic choice. But now both sides are starring in the worst episode of Who Wants to Trade Fast?