Karnataka Chief Minister Siddaramaiah on Friday expressed concern over the United States’ decision to impose a 25 per cent tariff, along with an additional penalty on India for continuing oil imports from Russia. He warned that the move would impact not just the nation but individual states like Karnataka as well.
“It will impact the state also, and the whole country at large. I will discuss this issue with the concerned Minister,” Siddaramaiah told reporters.
Karnataka Minister Priyank Kharge also voiced unease, urging the central government to engage in diplomatic dialogue with the United States.
“This is something we might have to live with, but we’ll see how it impacts. Hopefully, the central government will get its act together and convince their friend Donald Trump to reduce the tariffs,” Kharge said.
The tariff hike follows a new executive order signed by US President Donald Trump, which imposes revised import duties on 70 countries, including India. The order, taking effect from August 7, targets Indian oil imports from Russia and cites a national emergency under Executive Order 14257.
Trump’s sharp remarks on social media platform Truth Social accompanied the announcement: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India; their tariffs are too high.”
Under the new order:
- India faces a 25% tariff along with an unspecified penalty.
- Neighbouring countries like Pakistan (19%), Bangladesh (20%), and Sri Lanka (20%) face lower duties.
- Countries with higher tariffs than India include Syria (41%), Laos (40%), and Iraq (35%).
- Tariffs for key trade partners like the UK (10%) and South Korea (15%) are significantly lower.
According to the executive order, goods already in transit before August 7 and entering the US before October 5 will continue under previous tariff rates.
In Parliament, Commerce and Industry Minister Piyush Goyal addressed the issue, assuring lawmakers that the government is actively assessing the impact.
“We are in dialogue with exporters, industries, and stakeholders to understand the full implications and will take all necessary steps to safeguard national interests,” Goyal told both Houses.
This development could further strain global trade ties and create ripple effects across India’s domestic economy, particularly in states reliant on export-linked industries and imported crude processing.
