Tensions Rise as Trump Threatens Major Tariff Hike on India Over Russian Oil Trade
In a strong and controversial statement, former U.S. President Donald Trump has announced plans to sharply increase tariffs on India within the next 24 hours, citing India's ongoing oil trade with Russia. Speaking during a televised interview, Trump criticized India for what he described as unfair trade practices and accused the country of helping to “fuel the war machine” by continuing energy imports from Russia.
“India Hasn’t Been a Good Trading Partner,” Says Trump
Trump didn't hold back when expressing his frustration over what he called an imbalanced trade relationship. “India has the highest tariffs in the world. Nobody talks about it, but we do very little business with them because of these high tariffs,” he said.
According to Trump, India benefits significantly from access to the U.S. market while giving little in return. “They do a lot of business with us, but we don’t do business with them,” he said. Although he mentioned a previously agreed 25% tariff rate, he now plans to raise it “very substantially,” pointing directly to India’s oil dealings with Russia as the reason.
“They are buying Russian oil and then selling it for big profits. That’s fuelling the war machine,” he said, referring to the ongoing conflict involving Russia and Ukraine. “If they’re going to do that, I’m not going to be happy.”
No Progress on a Trade Deal
When asked about the possibility of a new trade agreement between the U.S. and India, Trump was dismissive, saying that the core issue remains India’s high tariffs. He admitted India had offered to lower tariffs, even to zero in some cases, but said it’s “not good enough,” especially in light of its continued energy ties with Russia.
India Hits Back Hard
India didn’t take the criticism lightly. Just hours after Trump’s remarks, the Indian government issued a strongly worded response defending its actions and pushing back against what it called “unjustified and unreasonable” targeting by the U.S. and European Union.
India emphasized that its imports of Russian oil are a matter of national interest and energy security, especially given the country’s large population and growing economy. It also pointed out the apparent double standards, noting that both the U.S. and EU continue to do business with Russia in various sectors beyond energy.
According to India’s External Affairs Ministry, the U.S. still imports uranium hexafluoride from Russia for its nuclear sector, palladium for electric vehicles, and various chemicals and fertilizers. Meanwhile, European nations maintain trade in fertilizers, mining products, iron, steel, and machinery with Russia.
“Unlike our case, such trade is not even a vital national compulsion,” said the ministry, adding that India, like any sovereign nation, will act to protect its national interests and ensure its economic security.
Tariff Hikes Already in Motion
Adding weight to his words, Trump recently signed an executive order titled “Further Modifying the Reciprocal Tariff Rates,” which lays out increased tariffs on over 60 countries—including India. The new measure includes a steep 25% tariff hike, signaling that this isn’t just talk, but a move already in motion.
A Growing Divide?
This heated exchange adds a new layer of strain to India-U.S. relations, which have otherwise been marked by growing cooperation in areas like defense, technology, and trade. Trump’s comments suggest a more combative approach, especially if he were to return to power.
For India, the message is clear: national interest remains the guiding principle, especially when it comes to energy security. As global geopolitical dynamics continue to shift, it appears both countries will need to navigate these differences carefully if they want to preserve the gains made in their strategic partnership over recent years.
In the meantime, businesses, exporters, and trade analysts on both sides will be closely watching to see how this tariff standoff unfolds—and what it means for the future of India-U.S. economic ties.
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