Trump threatens to ‘Substantially’ raise tariffs on Indian Goods over Russia Oil ties
In a sharp escalation of trade tensions, former U.S. President Donald Trump has warned that tariffs on Indian goods will be “substantially” increased due to India’s continued imports of Russian oil and military equipment.
Trump stated that although India is “our friend,” it maintains some of the highest tariffs on American products and continues to benefit economically from discounted Russian crude. He also criticized India for doing business with Russia “despite the fact that they are killing thousands of innocent people in Ukraine,” accusing New Delhi of prioritizing profits over principles.
He alleged that India not only imports large quantities of oil from Russia but also resells it for profit on global markets, undermining the impact of Western sanctions. Trump added that his administration would impose a new penalty beyond the existing 25% tariffs on Indian imports to address what he called an unfair trade and energy dynamic.
India currently imports approximately 35–40% of its crude oil from Russia. Indian officials have defended the purchases, stating that affordable energy is a national necessity, especially to curb inflation and maintain economic stability. They have called Trump’s remarks unjustified and emphasized that India’s foreign policy is based on strategic autonomy and national interest.
While the economic impact of increased tariffs may be limited in the short term, experts warn that this move could strain diplomatic and trade relations further. The U.S. Congress is already considering legislation that would allow for harsher tariffs—potentially exceeding 100%—on countries continuing energy and defense deals with Russia.
This development adds another layer to the already complex India-U.S. trade relationship, as both sides continue to negotiate a mutually beneficial trade pact while managing diverging geopolitical alignments.