Washington / New Delhi, August 5, 2025: U.S. President Donald Trump on Tuesday signaled a sharp escalation in trade tensions with India, announcing plans to “very substantially” raise tariffs on Indian imports within the next 24 hours. The move, he said, was in response to India’s continued purchase of Russian oil, which he claimed was fueling Moscow’s war in Ukraine.
“They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy,” Trump said in an interview with CNBC, adding that India’s own tariff regime was also a key concern. He did not disclose the revised tariff rate but stressed that the increase from the current 25% rate would be “significant.”
The announcement follows Trump’s July declaration of a 25% tariff on Indian goods, citing broader geopolitical and trade imbalances. The latest threat marks a new low in U.S.-India trade ties, already strained by conflicting foreign policy positions.
In a rare show of political consensus, leaders across India’s political spectrum condemned Trump’s remarks.
Manish Tewari, a senior opposition Congress MP, said: “Trump’s disparaging comments hurt the dignity and self-respect of Indians. The time has come to call out this constant bullying.”
Baijayant Jay Panda, Vice President of the ruling BJP, posted on X (formerly Twitter), quoting Henry Kissinger: “To be an enemy of America can be dangerous, but to be a friend is fatal.”
India’s Ministry of External Affairs issued a firm response, rejecting what it called “unjustified targeting” of India over its Russian energy imports. The ministry pointed out that both the United States and the European Union continue to trade with Russia, despite their public criticism of Moscow and the war in Ukraine.
“It is revealing that the very nations criticising India are themselves engaging in trade with Russia,” the statement said, citing European Union trade figures of €67.5 billion with Russia in 2024, including record LNG imports of 16.5 million metric tons.
It also noted that the U.S. continues to import Russian uranium hexafluoride, palladium, fertilizers, and chemicals—though sources for the data were not disclosed.
Requests for comment from the U.S. embassy and the EU delegation in New Delhi went unanswered.
India is currently the largest buyer of seaborne Russian crude, averaging about 1.75 million barrels per day from January to June 2025, a 1% increase year-on-year, according to data shared with Reuters by trade sources.
Despite growing Western pressure, New Delhi has refused to scale back its ties with Moscow, citing both economic necessity and historic relations.
Two senior Indian officials confirmed that National Security Adviser Ajit Doval will travel to Russia this week, with Foreign Minister S. Jaishankar expected to follow in the coming weeks.
President Trump has also warned that new U.S. sanctions on Russia and its trading partners will take effect on Friday, unless Moscow moves to end the war in Ukraine. The announcement has sparked fresh concerns over economic fallout for India.
On Tuesday, Indian financial markets responded nervously to the developments. The BSE Sensex fell 0.38%, while the rupee weakened by 0.17% against the U.S. dollar.
