WASHINGTON DC: U.S. President Donald Trump on Wednesday announced a new 25% tariff on Indian imports, citing India’s continued purchase of Russian oil as the primary reason.

The move comes after trade talks between the two countries collapsed, deepening a widening diplomatic rift.

The additional tariff will come into effect 21 days from now, raising duties on selected Indian exports to as high as 50%. This places India among the most heavily taxed U.S. trade partners.

Notably, the executive order made no mention of China, another key buyer of Russian oil. When asked if similar tariffs on Beijing are being considered, the White House declined to comment.

Trade experts say this is the most serious strain in U.S.-India relations since Trump resumed office in January.

The tariffs are expected to hit India’s $87 billion export market to the U.S., particularly affecting textiles, footwear, gems, and jewelry.

The announcement marks a sharp departure from the cordial Trump-Modi summit earlier this year.

In recent remarks, Trump criticized India’s trade practices as “obnoxious,” mocked its economy as “dead,” and accused it of profiting from discounted Russian oil while ignoring Russia’s war crimes in Ukraine.

India’s Ministry of External Affairs called the decision “extremely unfortunate,” arguing that several nations are buying Russian oil to meet domestic demands.

The ministry said India’s energy imports are guided by economic needs of its 1.4 billion people and vowed to take “all necessary steps” to protect national interests.

The tariff escalation comes just days before Indian Prime Minister Narendra Modi’s scheduled visit to China—his first in over seven years—sparking speculation of a realignment in regional diplomacy as U.S.-India ties deteriorate.

Following Trump’s announcement, global oil prices climbed 1%, rebounding from a five-week low. The price surge was also buoyed by a larger-than-expected drop in U.S. crude inventories.

Meanwhile, U.S. Treasury Secretary Scott Bessent warned last week that China could face similar tariffs if it continues importing Russian oil.

The warning comes as the current U.S.-China tariff ceasefire is set to expire on August 12.