The relationship between India and the United States has hit a new low this week after American President Donald Trump imposed sweeping “secondary tariffs” on Indian exports, triggering concerns across global markets and diplomatic circles. This move, widely seen as a response to India’s continued import of Russian oil, has doubled tariffs on Indian goods destined for American shores — making it the highest such penalty India has ever faced from the US.

President Trump, emphasising a harder economic line, announced Wednesday night that Indian products would now face a crippling 50% tariff in the US market. This decision came just as India, under Prime Minister Narendra Modi’s leadership, remained steadfast in its energy trade partnerships despite mounting Western pressure to cut off Russian supplies. When asked by a reporter why India was being singled out for these sanctions while other countries, including China, also continue to buy Russian oil, Trump responded firmly: “It’s only been 8 hours. So, let’s see what happens. You’re going to see a lot more… You’re going to see so many secondary sanctions.” This statement signalled that India might be the first in line but other countries could also face similar penalties if they do not align with US policy objectives regarding Russia.

India’s Response

Speaking at a packed auditorium in Delhi, Prime Minister Modi directly addressed this challenge with resolve. He declared that India would never allow the interests of its farmers, fishermen, or dairy workers to be sacrificed at the altar of foreign policy pressure. “I know I will have to pay a huge personal price for this stand, but I am ready,” Modi asserted, emphasising that protecting the livelihoods of Indian agricultural communities is a non-negotiable priority for his government. This strong statement drew applause, coming just hours after President Trump’s latest executive order took effect.

New Delhi criticised the US move as “unjustified, unfair, and unreasonable,” pointing out that several other major economies, including China, continue importing Russian oil at scale yet have so far escaped such stringent penalties. Indian officials stressed that their decisions are driven by the need to ensure affordable energy for 1.4 billion people, particularly when global oil prices remain volatile. The Ministry of External Affairs noted that India’s imports of Russian energy have historically been for market stability during turbulent conditions and reaffirmed India’s resolve to resist any punitive measures aimed solely at its policies.

What are Secondary Tariffs?

The “secondary tariffs,” as explained by US trade policy experts, are designed to force America’s trading partners to make a choice: either cease trading with Russia or face penalties on their exports to the United States. The clear implication is that countries not curbing their Russian energy imports, such as China, may soon face hefty tariffs as well. Chinese trade officials have already dismissed the US approach as a “losing game,” vowing to continue imports consistent with their national interests. The looming threat adds tension ahead of the upcoming US-China trade talks.

Indian exporters in sectors such as textiles, gems and jewellery, automotive, and seafood are expected to bear the brunt of these tariffs, with experts estimating that nearly 55% of India’s exports to the US could be affected. This scenario poses risks of job losses and higher prices for consumers. Despite calls from economists and farmers’ unions for the government to maintain a strong stance, business lobbies are seeking urgent relief. Amidst this economic challenge, Prime Minister Modi’s assurance has instilled a mood of resilience and defiance in the national markets.

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