New trade tensions between the U.S. and India escalated this week as former President Donald Trump's 50% import tariffs took effect, targeting New Delhi's purchases of Russian oil. The measures – doubling initial 25% duties imposed earlier – mark one of the most significant economic confrontations between the two nations in recent years.
Trump accused India of "indirectly financing Moscow's war in Ukraine" through its energy deals, according to statements released by his policy team. The move comes as India remains one of the largest importers of Russian crude oil, with purchases increasing significantly since 2022.
Analysts suggest the tariffs could disrupt bilateral trade flows exceeding $130 billion annually. "This creates a complex challenge for Indian manufacturers and U.S. businesses relying on trans-Pacific supply chains," said Mumbai-based trade expert Rajiv Mehta. "The timing is particularly sensitive as both countries navigate post-election economic strategies."
Indian officials have maintained that energy imports from Russia are necessary to meet domestic demand and stabilize prices. The development raises questions about the future of U.S.-India cooperation in technology and defense sectors, previously seen as key areas for strategic partnership.
