In a significant intensification of economic hostilities, US President Donald Trump has declared plans to sharply increase tariffs on Indian imports, following the earlier imposition of a blanket 25% duty. Trump’s new tariff threat is expected to be implemented within the next 24 hours, with his administration expressing dissatisfaction over India’s ongoing purchases of Russian oil and defense-related equipment.
During an interview with CNBC, Trump criticized India’s trade practices and accused the country of capitalizing on the conflict in Ukraine. “India does a lot of business with us, but we don’t get the same in return,” Trump remarked. “We settled on 25 percent, but that’s going up substantially—very soon,” he warned. The president further accused India of reselling Russian oil for profit, stating, “They’re fueling the Russian war machine, and I won’t stand for that.”
This sharp rhetoric follows Trump’s earlier remarks where he dismissed both India and Russia as ‘dead economies’, fueling diplomatic pushback.
Russia responded strongly to Trump’s statements. Kremlin spokesperson Dmitry Peskov condemned the US leader’s threats as “illegal pressure” on sovereign nations. “Countries have the right to select their trading partners freely,” Peskov stated, denouncing the use of coercive tactics to undermine Moscow’s trade relations.
Trump’s grievance centers on India’s energy cooperation with Russia amid the Ukraine conflict. He accused India of profiting from global resales of discounted Russian oil, ignoring the human cost of the war in Europe.
India, however, defended its position through an official statement from the Ministry of External Affairs, terming the US and EU criticism “unjustified and unreasonable.” The ministry highlighted that India turned to Russian oil only after traditional suppliers were diverted to Europe following the Ukraine conflict. “Our energy imports are about affordability and stability for Indian consumers,” the statement said.
India also pointed out that both the European Union and the US continue trade with Russia, including substantial imports of energy, fertilizers, and industrial goods. The ministry warned that New Delhi will take “all necessary steps to safeguard national economic interests.”
With Trump’s new tariff threat looming, global economic tensions may escalate, testing the resilience of India-US ties amid shifting geopolitical alliances.
