Trump warns India of massive tariff hike for buying Russian oil

WASHINGTON, AUG 4: In a sharp escalation of economic tensions, US President Donald Trump announced plans to “substantially” raise tariffs on Indian imports over New Delhi’s continued purchase of Russian oil — a move he says undermines global efforts to halt Russia’s war in Ukraine.

Trump slams India’s oil trade practices
Posting on Truth Social, Trump accused India of not only purchasing “massive amounts” of Russian oil, but also reselling much of it on the open market for “big profits.”

“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote.

“Because of this, I will be substantially raising the Tariff paid by India to the USA.”

Although Trump did not specify the exact rate of the new tariffs, he had earlier proposed a blanket 25% tariff on goods imported from India, citing trade imbalance and what he described as “strenuous and obnoxious non-monetary trade barriers.”

India responds, defends energy policy
Reacting to the remarks, Indian government sources told Reuters that New Delhi will not halt oil imports from Russia, despite Trump’s threats. Officials emphasized that India’s energy decisions are based on national security and economic needs.

“India and Russia share a steady and time-tested partnership,” the Ministry of External Affairs said last week.

Between April and June 2025, Russian oil made up 33.7% of India’s total crude imports, down slightly from 36% in 2024. Interestingly, US crude exports to India rose from 3.5% in 2024 to 8.5% in the current fiscal quarter, signaling a gradual shift in sourcing strategy.

Washington-New Delhi tensions on rise
Trump’s criticism wasn’t limited to oil trade. He accused India of unfair trade practices and implied that both India and Russia were “dead economies.”

The US president also warned of an “additional penalty” on India for purchasing Russian military equipment, calling the relationship with Moscow a global concern.

“This is not good at a time when the world wants Russia to stop the killing in Ukraine,” he added.

India focused on diversifying crude sources
In response to global scrutiny, Indian public sector oil companies have been instructed to diversify crude supply sources to reduce dependence on any single region. India now imports oil from the Middle East, Africa, North and South America, among others, in an effort to maintain supply security.