Will US President Trump Impose 500 Percent Tariffs on India?
The US plans to raise tariffs on India to 500% under a new Russia sanctions bill. This move could reshape global alliances and strain India–US relations.
US President Donald Trump is once again in the news over a major tariff decision that could strongly impact India–US relations. The US government is working on the Sanctioning Russia Act, 2025. Under this proposed law, any country that deals in Russian oil or petroleum products will face US tariffs. India is already paying 50% tariffs under this rule.
Now, the US is planning to raise tariffs on India to at least 500%, and President Trump has reportedly agreed to this move. Senator Graham said the proposal may be discussed in the US Congress early next week. If passed, this decision could permanently damage relations between India and the United States and has already raised serious concern in India’s business circles.
Reacting to the news, Kotak Mahindra Bank Chairman Uday Kotak shared an old 2024 post on X, stating that the US holds absolute power in military, finance, and technology, and under Donald Trump, it would use this dominance. The Ministry of External Affairs also responded, saying it is aware of the proposed bill and is closely monitoring developments.
President Trump has defended tariffs, saying they are making the US rich and could bring in over $650 billion in revenue. He later hinted that the US military budget should rise from $1 trillion to $1.5 trillion. Experts believe this indicates preparations for a major war. Trump had earlier renamed the US Defense Department as the Department of War.
Meanwhile, India appears to be improving relations with China to counter US pressure. After the 2020 Galwan Valley clash, India restricted Chinese firms, but the Finance Ministry is now considering lifting those restrictions. Chinese Ambassador Xu Feihong also said India and China should unite against US pressure.
Trump has also mocked Prime Minister Narendra Modi and French President Emmanuel Macron publicly, raising concerns over changing global power dynamics.
