US Threatens Hefty Tariffs on Indian Goods Over Russian Oil Purchases
US Threatens Hefty Tariffs on Indian Goods Over Russian Oil Purchases
New Delhi, August 5, 2025 – In a sharp escalation of trade tensions, former President Donald Trump announced Tuesday that he plans to “very substantially” raise U.S. import duties on Indian products within the next 24 hours, citing India’s continued reliance on Russian crude oil.
“They’re fueling the war machine,” Trump told CNBC. “If India keeps buying Russian oil, I’m not going to be happy—and neither will American workers.”
“They’re fueling the war machine,” Trump told CNBC. “If India keeps buying Russian oil, I’m not going to be happy—and neither will American workers.”
India Pushes Back on U.S. “Bullying”
India’s ruling Bharatiya Janata Party and the main opposition Congress both condemned Trump’s threat as unfair. Congress leader Manish Tewari slammed the move as an assault on India’s dignity, urging New Delhi to stand firm against “constant bullying and hectoring.” BJP Vice President Baijayant Jay Panda echoed that sentiment on X, quoting Henry Kissinger:
“To be an enemy of America can be dangerous, but to be a friend is fatal.”
“To be an enemy of America can be dangerous, but to be a friend is fatal.”
India’s Ministry of External Affairs decried the U.S. stance as hypocritical, noting that Washington—and the EU—continue significant trade with Russia despite the conflict in Ukraine. The statement highlighted that Europe imported €67.5 billion worth of Russian goods in 2024, including a record 16.5 million tonnes of LNG, while the U.S. still buys Russian uranium hexafluoride, palladium, fertilizers, and chemicals.
Geopolitics and Economics Collide
Trump first imposed 25% tariffs on Indian imports in July and has since linked further penalties to any country that sources energy from Moscow. However, he did not specify the new rate. U.S. officials cite a mix of strategic disagreements—ranging from India’s Russia ties to data privacy standards—as barriers to a comprehensive U.S.-India trade deal.
Meanwhile, India remains Russia’s biggest buyer of seaborne crude, importing roughly 1.75 million barrels per day in the first half of 2025—up 1% from a year earlier. Under pressure from Western allies to distance itself from Moscow after Russia’s 2022 invasion of Ukraine, New Delhi has maintained its longstanding energy and defense partnerships with Russia.
What’s Next?
Diplomatic channels are set to hum: India’s National Security Adviser, Ajit Doval, is slated to visit Moscow this week, followed by Foreign Minister S. Jaishankar in the coming weeks. On Trump’s side, he has warned that new sanctions on Russia—and on any country buying its oil—will kick in by this Friday unless Moscow moves to end the war in Ukraine.
Financial markets are already jittery. India’s Sensex fell 0.38% on Tuesday as the rupee slipped 0.17% against the dollar, signaling investor worry over potential fallout from a full-blown trade war with the U.S.
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