‘Fuelling the war machine’: Trump threatens hike in tariffs on India in next 24 hours
Trump India tariff hike: US President Donald Trump on Tuesday warned that he would “very substantially” raise tariffs on imports from India within the next 24 hours, citing New Delhi’s continued purchase of Russian oil, a day after he announced on Truth Social that he would be further hiking duties on India.
Trump criticizes India’s high tariffs
“With India, what people don’t like to say about India, they’re the highest tariff nation. They have the highest tariff of anybody. We do very, very little business with India because their tariffs are so high,” Trump said in an interview with CNBC Squawk Box, PTI reported.
“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. So we settled on 25 per cent (tariff), but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil. They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy,” he added.
Ongoing trade tensions and imbalance
He added that India’s high tariff rates on American goods remained a key sticking point in bilateral trade relations. However, Trump did not specify the new tariff rate he intends to impose on Indian imports.
During Prime Minister Modi’s recent visit to the US, both nations had reaffirmed their commitment to economic ties, setting an ambitious target of doubling bilateral trade to $500 billion by 2030. In 2024, total goods trade between India and the US reached $129.2 billion. US exports to India rose by 3.4 per cent to $41.8 billion, while imports from India increased by 4.5 per cent to $87.4 billion — leaving the US with a trade deficit of $45.7 billion.
Trump plans penalties for energy trade with Russia
On July 31, ahead of the August 1 deadline, Trump had said he would slap at 25 per cent tariff plus an unspecified “penalty” on India for trading with Russia.
Trump has also declared that starting Friday, he will impose new sanctions not only on Russia but also on countries that continue to buy its energy exports, unless Moscow takes concrete steps toward ending the war in Ukraine.
Trump links oil prices to Russia’s war strategy
Taking on Russia on Tuesday, Trump said that the declining energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine.
“If energy goes down enough, Putin is going to stop killing people,” Trump said in the interview. “If you get energy down, another $10 a barrel, he’s going to have no choice because his economy stinks.”
India defends oil imports as economic compulsion
In response, India on Monday criticised the United States and the European Union for targeting Indian refiners over their crude oil exports.
The Ministry of External Affairs stated that while India’s imports are “a necessity compelled by the global market situation,” the countries criticising it are themselves “indulging in trade with Russia” even when “such trade is not even a vital compulsion.”
India’s Russian oil imports show recent decline
India has emerged as the largest buyer of seaborne crude from Russia, importing around 1.75 million barrels per day between January and June this year—up 1% from the same period in 2024, according to trade data quoted by Reuters.
However, according to the latest tanker data from global analytics firm Kpler, India’s imports of Russian oil dropped to 1.6 million barrels per day (bpd) in July — a decline of 24 per cent compared to June and 23.5 per cent lower than July last year. The share of Russian crude in India’s overall oil import basket also shrank significantly, falling to 33.8 per cent in July from 44.5 per cent the previous month.
Diplomatic visits continue amid tensions
Since Russia’s invasion of Ukraine, India has faced mounting pressure from the West to curb its energy ties with Moscow. However, New Delhi has consistently defended its position, citing deep-rooted strategic ties with Russia and urgent economic necessities.
National Security Adviser Ajit Doval is likely to travel to Russia this week for a previously scheduled visit, according to two government sources, Reuters reported. Foreign Minister S. Jaishankar is also expected to visit Moscow in the coming weeks.
Trump’s tariff threat adds strain to US-India relations
The rift with Washington intensified after US President Donald Trump’s July 31 announcement of a 25% tariff on Indian goods being shipped to the US, paired with a warning of “unspecified penalties” if New Delhi continues purchasing Russian oil.
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