U.S. President Donald Trump has renewed threats to impose higher tariffs on Indian goods in response to New Delhi's continued purchases of Russian oil, escalating trade tensions between the two nations. In a social media post on Monday, Trump accused India of profiting from reselling Russian oil on global markets and vowed to "substantially raise" U.S. tariffs on Indian imports.
India's foreign ministry swiftly rejected the criticism, calling the targeting "unjustified and unreasonable" while pledging to protect its economic interests. A spokesperson emphasized that India's oil imports from Russia—which reached 1.75 million barrels per day in the first half of 2024—stem from market necessities after traditional suppliers redirected exports to Europe following the Russia-Ukraine conflict.
The dispute highlights growing geopolitical friction as Trump prepares to implement new sanctions targeting Russian energy exports and their buyers starting Friday. Despite Western pressure to reduce ties with Moscow, India has maintained its trade relationship, citing longstanding diplomatic and economic considerations.
This marks Trump's second major tariff move against India in 2024, following a 25% levy announced in July. U.S. officials have cited unresolved trade issues and geopolitical alignment as barriers to a comprehensive trade agreement. Analysts warn that escalating tariffs could disrupt supply chains and affect global energy markets, given India's status as the largest buyer of seaborne Russian crude.
As deadlines approach, neither side has shown signs of backing down. India has pointed to continued EU-Russia trade as evidence of double standards, while U.S. policymakers remain focused on curbing Moscow's wartime revenue streams.
