India Hopeful US Will Review Additional 25% Tariff Linked To Russian Oil, Defence Purchases

US President Donald Trump's unilateral 50% tariff on Indian goods came into on Wednesday. However, New Delhi is hopeful that US would review the 25% punitive levy for India's oil purchases from Russia, which they called "unjustified", sources told NDTV Profit.

While the tensions rise, India and the United States remain engaged in discussions to resolve their ongoing tariff standoff, with officials maintaining regular contact to find a mutually acceptable way forward.

Despite the differences on tariff issues, both governments have underlined that the broader bilateral relationship is not confined to trade alone. Strategic, defence, technology, and investment ties continue to expand, reflecting the depth and resilience of the partnership.

At the same time, India has reiterated its firm position on protecting sensitive sectors. Agricultural and dairy products remain red lines for New Delhi, with policymakers stressing that domestic interests in these areas cannot be compromised in any trade negotiation.

The Department of Homeland Security (DHS), in a draft order published on Monday, said the increased levies would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025”.

Trump had announced reciprocal tariffs of 25% on India that came into effect on Aug. 7, when tariffs on about 70 other nations also kicked-in. He later announced doubling tariffs on Indian goods to 50% for India's purchases of Russian crude oil, but gave a 21-day window to negotiate an agreement.

India has so far avoided imposing retaliatory tariffs on US goods and has maintained trade negotations with Washington. New Delhi was one of the early trade partners to start talks with Trump after his inauguration in January. A visit to India by a US team this month was cancelled.

Prime Minister Narendra Modi has vowed to protect the interests of Indian farmers, fishermen and small businesses in the face of US trade pressure. During his Independence Day speech on Aug. 15, he assailed rising "economic selfishness" and protectionism.