Washington, D.C., August 5, 2025 — U.S. President Donald Trump has signaled a sharp escalation in trade tensions with India, announcing plans to “very substantially” increase tariffs within the next 24 hours. The move, Trump claimed, is in response to India’s continued import of Russian crude oil—a longstanding point of contention in the evolving U.S.-India relationship.
Speaking to CNBC, President Trump stated, “They have the highest tariff of anybody. We settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours because they’re buying Russian oil. They’re fueling the war machine. We do little business with India; they do a lot of business with us.”
This latest threat follows his earlier imposition of a 25% tariff on Indian goods and renewed accusations that India is profiting from the Ukraine conflict by purchasing discounted Russian oil and reselling it on global markets.
Trump Accuses India of Profiteering from the Ukraine Conflict
In a post on his platform, Truth Social, President Trump accused India of “buying massive amounts of Russian oil” and reselling it “on the open market for big profits.” He added, “They don’t care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA. Thank you for your attention to this matter!!!”
India Rejects Allegations, Defends Energy Strategy
India's Ministry of External Affairs (MEA) issued a firm rebuttal, denouncing the allegations as “unfounded and politically motivated.” The MEA emphasized that India turned to Russian oil only after traditional supply routes from the West were redirected in response to the Ukraine conflict, leaving emerging economies scrambling for alternatives.
“The United States at that time actively encouraged such imports by India to help stabilize global energy markets,” the MEA noted.
The ministry further pointed to the continued and significant economic relationships between the West and Russia. In 2024, the European Union recorded €67.5 billion in goods trade with Russia and an additional €17.2 billion in services. EU imports of Russian liquefied natural gas (LNG) surged to a record 16.5 million tonnes—far exceeding India’s energy transactions with Moscow.
The United States itself continues to rely on critical Russian imports, including uranium hexafluoride for its nuclear sector, palladium for the electric vehicle industry, fertilizers, and a range of industrial chemicals.
“In this context, the targeting of India is both unjustified and unreasonable,” the MEA asserted. “Like any responsible economy, India will take all necessary steps to safeguard its national interests and economic security.”
Strategic and Diplomatic Implications
Trump’s escalating rhetoric comes at a time when India is navigating complex geopolitical pressures. Analysts view the tariff threat as part of Trump’s broader strategy to compel global partners to align more aggressively with U.S. policy on Russia.
However, New Delhi has maintained a consistent stance of strategic autonomy, choosing energy partnerships based on economic pragmatism rather than political coercion. With both nations heading into key election cycles, the fallout from these developments could reshape the contours of U.S.-India ties in the coming months.
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