Tensions between India and the United States flared up again on Tuesday after US President Donald Trump warned he would “very substantially” raise tariffs on Indian imports within the next 24 hours. His reason: India's continued purchase of oil from Russia.
Speaking to CNBC, Trump said, “India has not been a good trading partner. They do a lot of business with us, but we don’t do business with them. So we settled on 25 percent, but I think I’m going to raise that very substantially because they’re buying Russian oil.”
Just a day earlier, Trump had accused India of profiting from the re-export of Russian oil and vowed to ramp up trade penalties.
India swiftly pushed back, criticising both the US and the European Union for selectively targeting Indian refiners. The Ministry of External Affairs defended its crude imports, calling them a “necessity compelled by the global market situation,” while highlighting that Western nations were themselves still trading with Russia.
An official statement pointed out that EU-Russia trade continues to flourish, with Europe importing 16.5 million metric tons of LNG from Russia in 2024 and conducting €67.5 billion ($78 billion) worth of trade.
India asserted that it would take “all necessary measures” to protect its economic security and national interests.
The latest remarks mark a sharp escalation in the trade rift that began on July 31, when Trump slapped a 25% tariff on Indian goods and, for the first time, hinted at penalties over Russian oil purchases.
The growing tensions have sparked concerns over the economic fallout for India. National Security Adviser Ajit Doval is expected to visit Russia later this week, while External Affairs Minister S. Jaishankar is likely to follow in the coming weeks.