In a sharp escalation of trade tensions, U.S. President Donald Trump announced a new executive order imposing an additional 25% tariff on Indian imports. This stacks on an existing 25% reciprocal tariff, raising the overall standard duty on Indian goods arriving in the U.S. to up to 50%, specifically tied to India's ongoing purchase of Russian energy and military equipment. 

Trump’s action comes amid criticism that India is indirectly funding Russia’s war in Ukraine through substantial oil imports—about 1.75 million barrels per day—and defensive purchases. India’s government has defended its stance, citing energy security and accusing the U.S. and EU of hypocrisy given their own sizable trade with Russia. 

Economists warn the tariffs could hurt India’s competitiveness in the $64 billion export market to the U.S., affecting sectors like garments, pharma, auto parts, and gems. However, India's overall economic growth is expected to remain resilient. 

This confrontation highlights growing strains in U.S.–India ties, as Trade talks remain deadlocked and strategic alliances face reevaluation.