WASHINGTON, D.C. — August 5, 2025 — U.S. President Donald Trump has reignited trade tensions by announcing plans to significantly raise tariffs on Indian goods, citing India’s continued purchase of Russian oil amid the ongoing Ukraine conflict.
In a bold statement posted on his social media platform, Truth Social, Trump accused India of profiting from the war by reselling Russian oil on global markets. “India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said.
As a result, Trump declared, “I will be substantially raising the tariff paid by India to the USA.”
Trump Threatens 25% Tariff on Indian Imports
Although Trump did not specify the exact increase, he previously floated a 25% tariff on goods imported from India, raising concerns in New Delhi about the future of bilateral trade ties.
The former president also hinted at additional, unspecified penalties, targeting India’s ties with Russia and its membership in BRICS—an alliance he described as promoting “anti-American policies.”
India Vows to Continue Russian Oil Purchases
Despite the growing pressure from Washington, Indian officials have affirmed their commitment to energy security. According to two Indian government sources who spoke to Reuters, India will continue importing oil from Russia, asserting that such decisions are based on national interest.
“India, like any major economy, will take all necessary measures to safeguard its national interests and economic security,” said Randhir Jaiswal, spokesperson for the Ministry of External Affairs.
He further clarified that India began importing discounted Russian crude only after traditional energy suppliers redirected their exports to Europe during the early stages of the war. “The U.S. itself had encouraged such imports to stabilize global energy markets,” Jaiswal added.
U.S. Criticism Branded as ‘Unjustified’
India dismissed the criticism from Trump and his aides as unjustified and unreasonable targeting. Jaiswal pointed out that many Western nations, including those criticizing India, continue trading with Russia across various sectors—including energy, chemicals, and metals.
“Unlike our case, such trade is not even a vital national compulsion,” he said. “Where the U.S. is concerned, it still imports uranium, palladium, and fertilizers from Russia.”
Strategic Implications for U.S.-India Relations
Trump’s aggressive stance could severely strain ties between two of the world’s largest democracies. India, which has emerged as a strategic counterweight to China in the Indo-Pacific, is a vital partner in U.S. efforts to maintain regional stability.
The proposed 25% tariff and added penalties risk undoing months of trade negotiations, potentially undermining economic cooperation and military alignment.
Trump’s Broader Agenda Against BRICS
Trump has also linked India’s potential penalty to its growing involvement in BRICS (Brazil, Russia, India, China, and South Africa), a coalition he considers hostile to American interests. He recently announced a 10% tariff on countries aligning with BRICS, calling their collective stance “anti-American.”
“We have done very little business with India. Their tariffs are too high—among the highest in the world,” Trump wrote in a separate post on X (formerly Twitter). “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
India Awaits Clarity, Studies Implications
In response to the tariff threats, Indian trade authorities said they are closely monitoring Trump’s statements and evaluating their potential impact on current negotiations.
India has not yet issued a countermeasure but stressed its ongoing commitment to achieving a fair and balanced trade agreement with the United States.
Conclusion
The escalating rhetoric from former President Trump over India’s energy ties with Russia marks a sharp turn in U.S.-India relations, injecting uncertainty into trade talks and diplomatic relations. As both countries navigate shifting global alliances and economic pressures, how this standoff unfolds could shape the future of global trade dynamics and geopolitical alliances.
