New Delhi/Washington— Just days after slapping 25 per cent tariffs on Indian goods, U.S. President Donald Trump on Monday escalated his offensive against New Delhi, threatening a “substantial” hike in levies over India’s continued import of Russian oil. The move prompted a strong rebuttal from India, which denounced the action as “unjustified and unreasonable,” vowing to defend its economic and strategic interests.
Trump, in a late-night post on Truth Social, accused India of profiting by reselling Russian oil on the global market and turning a blind eye to the Ukraine war. “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 U.S.,” the post read.
India’s Ministry of External Affairs (MEA) responded swiftly, stating that India’s energy imports from Russia were driven by “national interest and affordability for Indian consumers,” especially after global markets were destabilised by the conflict. “Targeting India for such imports is not only unfair but also hypocritical,” the ministry said.
Highlighting trade figures, India accused both the U.S. and EU of continuing extensive trade with Russia. “The EU’s trade with Russia in 2024 included €67.5 billion in goods and €17.2 billion in services. Imports ranged from LNG to machinery and chemicals,” the MEA noted. The U.S., too, continued sourcing uranium hexafluoride for its nuclear power sector, along with palladium, fertilisers, and industrial chemicals.
The MEA also pointed out that India ramped up imports from Russia only after traditional suppliers redirected oil shipments to Europe in 2022. “At the time, the U.S. itself encouraged India to buy from Russia to help stabilise global prices,” the statement said.
Trump’s renewed threat came days after he wrongly claimed that India had ceased Russian oil imports — a claim refuted by Indian officials. In 2024, over 30 per cent of India’s crude oil came from Russia, up from 0.2 per cent before the Ukraine war, driven by discounted rates.
The tariffs, scheduled to take effect from August 7, could severely disrupt Indian exports to the U.S. Government officials say sectors like textiles and apparel — which account for $10.7 billion in exports — are expected to bear the heaviest burden. Talks are underway to roll out targeted financial support for affected exporters, an official confirmed.
While the Indian government is optimistic that American importers will absorb some of the cost, policymakers are also preparing contingency plans and looking toward the next bilateral trade negotiations scheduled for August 25 as a possible off-ramp.
Trade analysts warn that the tariffs could reduce India’s exports to the U.S. by nearly 30 per cent, from $86.5 billion in 2024-25 to around $60.6 billion in 2025-26. The Global Trade Research Initiative cautioned that India now faces a competitive disadvantage compared to countries like Vietnam, Bangladesh, and Mexico, which enjoy more favourable access to the U.S. market.
