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US President Donald Trump on Wednesday issued an executive order imposing an additional 25 percent tariff on Indian goods citing New Delhi’s continued imports of Russian oil, sharply escalating tensions between the two countries after trade talks collapsed.

The new measure raises tariffs on some Indian goods to as high as 50 percent — among the steepest faced by any US trading partner.

The move is expected to hit key Indian export sectors including textiles, footwear, and gems and jewelery and marks the most serious downturn in US-India relations since Trump returned to office in January.

It also comes as Indian Prime Minister Narendra Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as ties with Washington fray.

“India will take all actions necessary to protect its national interests,” India’s external affairs ministry said in a statement, saying it was “extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”

It said India’s imports were based on market factors and aimed at energy security for its population of 1.4 billion.

Trade analysts warned the tariffs could severely disrupt Indian exports. The additional 25 percent tariff comes into effect 21 days after August 7, the order said.

“With such obnoxious tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, economist at Emkay Global.

Indian officials have privately acknowledged growing pressure to return to the negotiating table. A potential compromise could involve a phased reduction in Russian oil imports and diversification of energy sources.

A senior Indian official said New Delhi was blindsided by the sudden imposition of the new levy and the steep rate, as both countries continue to discuss trade issues.

Trump’s decision follows five rounds of inconclusive trade negotiations, which stalled over US demands for greater access to Indian agriculture and dairy markets.

India’s refusal to curb Russian oil purchases — which surged to a record $52 billion last year — ultimately triggered the tariff escalation.

“Exports to the US become unviable at this rate. Clearly, risks to growth and exports are rising, and the rupee may face renewed pressure,” said Garima Kapoor, economist at Elara Securities. “Calls for fiscal support are likely to intensify.”

Trump’s executive order does not mention China, which also buys Russian oil. A White House official had no immediate comment on whether an additional order covering those purchases would be forthcoming.

US Treasury Secretary Scott Bessent last week said he warned Chinese officials that continued purchases of sanctioned Russian oil would lead to big tariffs due to legislation in Congress, but was told that Beijing would protect its energy sovereignty.

The US and China have been engaged in discussions about trade and tariffs, with an eye to extending a 90-day tariff truce that is due to expire on August 12, when their bilateral tariffs shoot back up to triple-digit figures. 

ISLAMABAD: The lower house of Pakistan’s parliament on Wednesday passed a resolution reaffirming support for the people of Palestine, condemning the Israeli military’s actions and Tel Aviv’s reported plans to take complete control of Gaza, state-run media reported.

Israel has killed over 61,000 Palestinians in Gaza since Oct. 7, 2023, in several military operations, drawing condemnations and outrage from nations across the world, including Pakistan.

Mediation between Israel and Palestine’s Hamas has collapsed despite intense international pressure for a ceasefire to ease hunger and appalling conditions in the besieged Palestinian territory.

“The House passed a resolution reaffirming Pakistan’s historic and unwavering support for Palestinian people and their struggle for freedom, dignity and justice,” state broadcaster Radio Pakistan reported.

The state media said the resolution was presented in the National Assembly by lawmaker Shazia Marri, who expressed concerns over the “continuing and escalating Israeli military aggression in Gaza,” which she said has resulted in the killing of civilians and widespread destruction of homes.

Israeli media reported earlier this week that Prime Minister Benjamin Netanyahu favors a complete military takeover of Gaza for the first time in two decades.

The move would reverse a 2005 decision to pull Israeli settlers and military out of Gaza while retaining control over its borders.

“The resolution strongly condemned the recent statements and actions by Israeli authorities indicating plans for long-term occupation of Gaza, forced displacement of its population and efforts to erase the Palestinian identity of the territory,” the state broadcaster said.

It also condemned the use of starvation, siege and collective punishment as “tools of war,” emphasizing that these acts are war crimes under international law, the state media reported.

The lower house of the parliament urged the United Nations and the international community to fulfill their moral and legal responsibilities by taking immediate and concrete steps to end Israeli military actions in Gaza.

“The resolution urged the government to continue to raise its voice for the Palestinian people at all international forums, including the United Nations and the OIC [Organization of Islamic Cooperation],” Radio Pakistan said.

Pakistan, which does not have diplomatic ties with Israel, has consistently condemned Israel’s occupation of Palestinian land and its war on Gaza, and has called for the uninterrupted flow of humanitarian aid into Palestinian territory.