U.S. President Donald Trump’s decision to impose an additional 25% tariff on Indian imports over its Russian oil purchases took effect on Wednesday, August 27, 2025. This brings the total tariff burden on Indian goods to a steep 50%, putting pressure on India’s trade with one of its largest export destinations.
In response, the Indian government is doubling down on its ‘Swadeshi’ and ‘Vocal for Local’ campaigns to reduce dependence on imports. Prime Minister Narendra Modi, on Tuesday (August 26), urged citizens to prioritize Indian-made products to strengthen domestic industries and safeguard the economy.
The tariff escalation follows two executive orders by President Trump — the first on July 31, 2025, imposing a 25% tariff, and the second on August 6, 2025, adding another 25% in retaliation for India’s continued imports of Russian oil.
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