Trump Threatens Major Tariff Increase on Indian Imports Over Russian Oil Purchases
By Andrea Shalal and Aftab Ahmed
Washington/New Delhi – U.S. President Donald Trump announced on Tuesday that he plans to significantly raise tariffs on imports from India, currently set at 25%, within the next 24 hours. This decision comes as India continues to buy oil from Russia amid the ongoing conflict in Ukraine.
Trump criticized India’s proposal for a “zero tariff” on U.S. goods, claiming it falls short considering India’s role in “fuelling the war” in Ukraine. He first issued a warning regarding Indian oil purchases on July 31, when he introduced a 25% tariff along with potential additional penalties.
In an interview with CNBC, Trump stated, “They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy.” He pointed out that India’s tariffs are still too high, saying, “India went from the highest tariffs ever to offering us zero tariffs, but that’s not enough because of what they’re doing with oil.”
In response, an Indian government source indicated that India’s oil purchases from Russia help stabilize global oil prices, reducing the strain from other regions. India, which is the world’s third-largest oil importer, obtains over a third of its oil from Russia.
“If we stop buying Russian oil, who can replace those barrels to keep the prices from skyrocketing? We don’t want a repeat of last year when prices hit $137 a barrel,” the source emphasized, speaking anonymously.
This backlash follows Trump’s earlier comments, which prompted India’s Foreign Ministry to assert that the country was being unfairly targeted for its Russian oil purchases. The ministry noted that many nations criticizing India are also engaged in trade with Russia.
The ministry highlighted that the European Union conducted substantial trade with Russia, amounting to 67.5 billion euros in 2024, specifically pointing out record imports of liquefied natural gas. Similarly, the U.S. continues to import various products from Russia, including uranium for its nuclear power sector.
As both the U.S. and EU have been reducing trade relations with Russia since the invasion of Ukraine, the recent tensions have strained U.S.-India relations. From January to June of this year, India imported about 1.75 million barrels of Russian oil daily, which is a slight increase compared to last year.
Despite Western pressure to distance itself from Russia, India stands firm on its long-standing relationship with Moscow due to economic necessities. India’s National Security Adviser Ajit Doval is still set to visit Russia this week, with Foreign Minister S. Jaishankar expected to follow suit.
The growing rift between India and the U.S. has emerged in recent weeks, especially after Trump announced new sanctions planned for countries buying Russian energy unless Moscow takes steps to de-escalate the conflict in Ukraine.
Concerns over these trade tensions are starting to impact India’s economy, as reflected by a 0.38% drop in the BSE Sensex and a 0.17% fall in the rupee against the dollar.
