Team siliconindia

• President Trump imposes an additional 25% tariff on Indian imports, raising total duties to 50%, citing India’s continued oil trade with Russia.
• Indian pharmaceutical sector excluded from immediate tariffs due to its critical role in affordable US healthcare.
• MEA calls the move 'unfair and unjustified', asserting energy imports are driven by national interest and market needs.

In a major escalation of trade tensions, US President Donald Trump has signed an Executive Order imposing an additional 25% tariff on all Indian imports, raising the total duty to 50%. The move, announced on Wednesday, targets India’s continued oil trade with Russia, which Washington claims poses an 'unusual and extraordinary threat' to US national security and foreign policy interests.

The new tariffs will take effect in two stages the initial 25% on August 7, with the additional levy coming into force after 21 days. However, Indian goods already in transit or meeting specific exemptions will be spared. In a significant relief, the Indian pharmaceutical sector has been excluded from the immediate tariff hike.

“Generic medicines from India are vital for affordable healthcare in the United States”, said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance. He added, “India-US partnership is key to securing API supply chains and enhancing healthcare resilience”.

India is a major global supplier of generic drugs and active pharmaceutical ingredients (APIs), and its exemption underscores the strategic importance of the sector in the US healthcare ecosystem.

Also Read: Anand Mahindra Calls for Bold Reforms as Tariff War Sparks Global Reset

Reacting strongly to the US decision, the Ministry of External Affairs (MEA) slammed the move as “unfair, unjustified and unreasonable”. In a statement, the MEA said, “The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India”.

The MEA further asserted that many other countries are also engaging in similar trade with Russia based on their own national interests. “It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India... India will take all actions necessary to protect its national interests”, it added.

The development signals rising geopolitical friction, with economic consequences likely to follow across key sectors.