U.S. President Donald Trump said on Tuesday that he would “very substantially” increase tariffs on imports from India within the next 24 hours, raising the current 25% rate. He cited India’s continued purchases of Russian oil as the reason for the move.
Trump also rejected India’s “zero tariff” offer for U.S. imports, claiming it was insufficient and accusing New Delhi of “fuelling the war” in Ukraine.
“They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy,” Trump told CNBC in an interview. He added that the main sticking point in U.S.-India trade relations was India’s high tariffs.
“Now, I will say this: India went from the highest tariffs ever. They will give us zero tariffs and let us in. But that’s not good enough, because of what they’re doing with oil not good,” Trump said.
Trump’s tariff warning follows his July 31 announcement of a 25% tariff on Indian goods, coupled with a vague threat of further penalties.
A senior Indian government official responded by arguing that India’s Russian oil purchases have helped stabilise global oil prices by easing demand on supplies from other regions.
India, the world’s third-largest oil importer and consumer, sources more than a third of its oil from Russia.
“If we stop buying Russian oil, who will replace those barrels to maintain market balance and prevent prices from shooting up? We don’t want a repeat of 2022, when prices surged to $137 a barrel,” the official said, speaking anonymously.
Trump’s fresh remarks echoed his comments on Monday, which drew a strong response from India’s Foreign Ministry, claiming the country was being unfairly singled out.
“It is revealing that the very nations criticising India are themselves engaging in trade with Russia (despite the Ukraine war),” the ministry stated.
“It is unjustified to single out India,” the statement added.
India cited Eurostat data showing that the European Union conducted €67.5 billion ($78 billion) worth of trade with Russia in 2024, including record imports of 16.5 million metric tons of liquefied natural gas.
The statement also noted that the United States continues to import Russian uranium hexafluoride for nuclear power, as well as palladium, fertilisers, and chemicals though it did not specify the sources of that data.
Also Read: Trump Postpones EU Tariff Deadline to 9 July for Further Talks
Neither the U.S. embassy nor the EU delegation in New Delhi immediately responded to requests for comment. Both have reduced trade ties with Russia since its full-scale invasion of Ukraine but have not severed them entirely.
Sudden Rift
According to trade data seen by Reuters, India imported about 1.75 million barrels per day of Russian oil from January to June this year, a 1% increase compared to the same period last year.
New Delhi has faced ongoing pressure from Western nations to scale back its relationship with Russia over the war in Ukraine. However, India has resisted, citing longstanding diplomatic and defence ties with Moscow, as well as pressing economic needs.
Despite the emerging tensions, India’s National Security Adviser Ajit Doval is still expected to proceed with a planned visit to Russia this week, while Foreign Minister S. Jaishankar is also scheduled to visit in the coming weeks.
Trump has said that starting Friday, he will impose new sanctions on Russia and countries that purchase Russian energy exports unless Moscow begins taking steps to end the war in Ukraine.
The growing trade tensions have sparked concern about the potential economic impact on India.
