WASHINGTON DC: US President Donald Trump on Monday said that he would “substantially increase” the tariff on Indian exports to the US over New Delhi’s continued purchase of Russian energy. Trump last week announced a 25% rate on Indian exports and an unspecified penalty if India continued to buy oil from Russia.
“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. Because of this, I will be substantially raising the Tariff paid by India to the USA,” said Trump on Truth Social, his social media platform.
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Trump announced 25% tariff on Indian goods on July 30, citing New Delhi’s purchases of Russian energy and military equipment as irritants in the bilateral relationship. Later on July 31, Trump termed India and Russia “dead economies” in another post on Truth Social.
Following the President’s statements, key administration officials such as secretary of state Marco Rubio and treasury secretary Scott Bessent have also made remarks criticising Indian energy purchases from Russia.
These statements come against the backdrop of two key events.
First, Washington has grown increasingly frustrated with Russia’s unwillingness to negotiate an end to the war in Ukraine. President Trump has made increasingly acrimonious statements about Russia’s President Vladimir Putin and announced he would move two American nuclear submarines near Russia. Trump has also expressed support for measures that would cripple Russia’s oil export revenues through secondary sanctions, which would impact countries such as India and China.
According to the Centre for Research on Energy and Clean Air, India bought 38% of all Russian crude oil exports in June, behind only China. CREA also estimated that India purchased 49 billion euros ($56 billion) worth of Russian fossil fuels in 2024.
Second, India and the United States have been unable to agree to a trade deal despite five rounds of in-person formal talks. According to key U.S. officials, President Trump is seeking expanded market access for U.S. goods, particularly in the agricultural sector.
“The Modi government has been very pragmatic considering the number of barbs that President Trump hurled at India last time that the Trump administration was in office. And yet, the two leaders would still get together for roadshows in Texas and Gujarat and still be good friends standing together on stage. It tells me that India can put up with a lot of this kind of pressure,” said Rick Rossow, who is chair for India at the Centre for Strategic and International Studies, a Washington D.C.-based think tank.
“But to ask India to cross political thresholds that would be impossible to cross and stay in office is going to be a bridge too far. I think India can handle the verbal pressure as long as a deal comes across that is politically palatable,” Rossow adds.
