Trump Threatens Steep Tariff Hike on India Over Russian Oil Ties; India, Russia Hit Back Hard
In a major escalation of trade tensions, US President Donald Trump has announced that he may “substantially” raise tariffs on Indian exports within the next 24 hours.
The warning, delivered during an interview with CNBC on Tuesday, is the latest in a series of remarks by Trump targeting India’s continued purchase of Russian oil and military equipment, which he claims undermines US efforts to curtail Russia’s war in Ukraine.
Trump accused India of being an imbalanced trading partner, arguing that while New Delhi benefits significantly from trade with the United States, Washington does not enjoy reciprocal access. India has not been a good trading partner because they do a lot of business with us, but we don’t do business with them,” Trump said.
“We settled on 25 percent, but I think I’m going to raise that rate quite substantially in the next 24 hours. They’re buying Russian oil and fueling the war machine. And if they are going to do that, I’m not going to be happy.”
Russia Slams Trump’s Statement, Defends India
Earlier on the same day, Russia sharply criticized Trump’s tariff threats and accused Washington of attempting to intimidate and pressure sovereign nations into ending trade relations with Moscow. Kremlin spokesperson Dmitry Peskov stated unequivocally that such actions are illegal under international law.
We hear many statements that are, in fact, threats — attempts to force countries to cut trade ties with Russia. We do not consider such statements to be lawful,” said Peskov.
“Sovereign countries have the right to determine their economic partners based on national interest. Any effort to undermine this will be viewed as coercion against Russia and its partners.”
Russia and India have significantly deepened their energy and defense ties since the start of the Ukraine war in 2022. India has emerged as one of the largest buyers of discounted Russian crude, which has helped stabilize India’s domestic energy market while offering Moscow a reliable buyer amid Western sanctions.
India Hits Back: “Unjustified and Hypocritical”
The Indian Ministry of External Affairs (MEA) responded swiftly and firmly, dismissing Trump’s statements as “unjustified and unreasonable” and defending India’s sovereign right to secure energy supplies based on national needs.
India’s imports are aimed at ensuring affordable and predictable energy costs for Indian consumers. These are not luxury imports but essential for national stability,” the MEA said in its official response.
India also pointed out the hypocrisy of the criticism, stating that many Western nations, including members of the European Union, continue to maintain significant trade relations with Russia — often beyond the energy sector — even as they call for other countries to scale back.
It is revealing that those criticizing India continue to engage in trade with Russia. Unlike in our case, such trade is not even a vital national compulsion.”
Potential Economic Fallout and Strategic Concerns
If enacted, the proposed hike in tariffs would add to existing duties on Indian exports, currently capped at 25 percent on several key product lines. India’s top exports to the US include pharmaceuticals, textiles, machinery, gems and jewellery, and auto components, many of which could be affected by a sudden rise in duties.
Economists have warned that a trade war between India and the United States could hurt both economies and create ripple effects across global supply chains.
Meanwhile, the strategic community is closely watching the unfolding tensions. The US and India have, over the past two decades, built a strong foundation for defense cooperation, technology transfers, and counter-China strategies in the Indo-Pacific.
Trade frictions, however, threaten to overshadow these growing strategic ssynergieskind of punitive rhetoric undermines trust. The Indo-US partnership is too valuable to be sacrificed over short-term political positioning,” said a retired Indian diplomat familiar with Indo-US negotiations.
Background: India’s Energy Strategy
India, the world’s third-largest oil consumer, has consistently maintained that energy security is non-negotiable. With global crude prices remaining volatile due to sanctions, supply chain disruptions, and OPEC+ cuts, discounted Russian oil has played a key role in stabilizing India’s economy and managing inflation.
Since the Ukraine war began in February 2022, India has increased its crude imports from Russia by over 10-fold, making Moscow one of New Delhi’s top suppliers. India has also clarified that its purchases are fully legal and do not violate any international sanctions, as neither India nor Russia is party to Western-imposed restrictions.
What Lies Ahead?
With Trump’s 24-hour ultimatum ticking, all eyes are on how the situation unfolds. Whether this marks the beginning of a new era of tariffs and retaliatory trade moves or whether diplomacy can prevail to ease tensions between two democratic allies remains to be seen.
What is certain, however, is that the global balance of power — and commerce — is shifting, and nations like India are increasingly asserting their strategic autonomy, even in the face of pressure from global superpowers.
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