Trump’s Executive Order Doubles Tariffs on India Over Russian Oil Imports, Escalating a Wider Geoeconomic Confrontation With BRICS
In a sweeping escalation of the U.S.’s geoeconomic confrontation with key BRICS nations, President Donald Trump on Wednesday signed an Executive Order doubling tariffs on India, from 25% to 50%, citing New Delhi’s continued import of Russian oil.
The move, grounded in national security law under the International Emergency Economic Powers Act (IEEPA), signals a dramatic hardening of Washington’s stance amid a breakdown in post-Cold War economic consensus.
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| File Photo: GirJPG |
Trump’s directive states: “Articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 percent... This shall stack on top of the existing 25% rate announced earlier this week.”
The new tariff regime takes effect 21 days from the order’s signing, by August 27, 2025, barring certain exemptions, such as goods already in transit or those protected by other trade provisions under Executive Order 14257 or Section 232 tariffs.
India in the Crosshairs: Energy Security vs. Strategic Pressure
India, which sourced nearly 44% of its oil from Russia in Q2 2025, has consistently defended its procurement on grounds of price, stability, and necessity.
The Ministry of External Affairs (MEA) issued a strong rebuttal on August 4, calling U.S. and EU criticisms “unjustified and unreasonable.” India highlighted that its purchases began only after traditional suppliers redirected crude to Europe during the early phase of the Ukraine war.
India’s statement further underlined the double standards of critics: “Nations that criticise us are themselves engaging in trade with Russia, including imports of LNG, uranium, fertilizers, and machinery.”
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“India’s policy is driven by national interest and energy security—not geopolitics.”
The tariff increase comes just a day after Indian National Security Advisor Ajit Doval landed in Moscow for scheduled discussions on defense, energy, and strategic affairs.
While the visit was pre-planned, its timing underscores growing BRICS alignment in response to mounting unilateralism from Washington.
Brazil Also Targeted: Judiciary, Trade, and Sovereignty Collide
President Trump’s action against India follows a similar offensive against Brazil. On July 31, the U.S. Treasury sanctioned Supreme Court Justice Alexandre de Moraes under the Global Magnitsky Act, accusing him of leading a politically motivated prosecution against former President Jair Bolsonaro.
Brazilian President Luiz Inacio Lula da Silva responded with defiance, saying he would not initiate contact with Trump: “I will not call Trump because he does not want to talk.”
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Move Coming in 24 Hours: Trump Threatens Steep Tariff Hike on India Over Russian Oil Trade Again
Brazil also faces a fresh 50% U.S. tariff on key exports, deepening the trade dispute. Finance Minister Fernando Haddad said Lula is open to receiving a call from Washington but would not capitulate. A delegation of Brazilian senators sent to Washington last month reported that White House officials appeared “ideologically charged” and unwilling to negotiate in good faith.
Wider BRICS Fracture: Strategic Autonomy As Common Cause
Amid this new phase of U.S. confrontation, BRICS countries—India, Brazil, Russia, China, and South Africa—appear to be quietly coalescing around the idea of resisting U.S. economic coercion.
Russia, for its part, on August 5 formally withdrew from the 1987 Intermediate-Range Nuclear Forces (INF) Treaty, citing “direct threats” from U.S. missile deployments in Asia and the Pacific.
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President Vladimir Putin warned that NATO-aligned activity in the Indo-Pacific, including Typhon missile systems in the Philippines, was provoking an arms race.
Trump, meanwhile, confirmed he had ordered two U.S. nuclear submarines into “appropriate regions” as a signal to Russia.
While China and South Africa have not issued statements this week, analysts note that Washington’s punitive approach is pushing BRICS from a loose economic bloc to an informal strategic front.
Economic Stakes and Trade Realignment
According to Canalys data cited by Bloomberg, India became the largest producer of smartphones imported into the U.S. last quarter—accounting for 44% of shipments. Apple’s shift from China to India, a development Trump had once endorsed, now faces new risks.
In May, Trump publicly warned Apple CEO Tim Cook: “I expect their iPhones that will be sold in the United States to be made in the United States, not India.”
The Executive Order doesn’t exempt electronics yet but leaves room for modification based on “retaliation or alignment” by impacted countries.
What the Executive Order Actually Says
Trump’s August 6 order makes several key determinations:
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Confirms the 25% tariff on Indian goods already in effect.
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Adds a second 25% duty, raising total tariffs to 50%, effective August 27.
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Describes India as “directly or indirectly” supporting Russian aggression through oil purchases.
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Sets mechanisms to evaluate and penalise other countries that import Russian oil, with India as the first named violator.
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Provides authority to the Commerce and State Departments to enforce and expand these penalties.
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Defines “indirect imports” to include oil purchased via intermediaries where Russian origin can be “reasonably traced.”
Legal and Diplomatic Fallout
While the order leans heavily on IEEPA, its real impact is political. Trump is expected to leverage this decision as a campaign issue, framing it as protecting U.S. jobs and punishing countries “undermining American security.”
Within India, the move may provoke a calibrated response. External Affairs Minister S. Jaishankar recently called for a “fair and representative global order—not one dominated by a few,” in remarks widely interpreted as a rejection of Washington’s unilateralism.
A Turning Point?
Trump’s doubling of tariffs against India marks a high-water mark in the decoupling of U.S. and BRICS economies. With defense realignments, energy sovereignty, and judicial independence now enmeshed in tariff battles, what started as a disagreement over oil is fast becoming a clash over the architecture of the global order.
Whether BRICS can translate shared grievance into coordinated strategy remains to be seen. But what is increasingly clear: Washington’s confrontational stance may be the very force galvanizing new alternatives to its leadership.
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