Trump Threatens Sharp Tariff Hike on India Over Russian Oil Trade
- Donald Trump has warned of a substantial tariff increase on India for allegedly profiting from Russian oil amid the Ukraine war.
- India maintains its oil imports are driven by national interest and denies any halt in Russian oil purchases.
- Experts warn that penalizing India, a major oil importer, could spike global oil prices and destabilize markets.
In a dramatic escalation of trade tensions, former U.S. President Donald Trump issued a stern warning to India, threatening to 'substantially' raise tariffs on Indian goods over the country’s continued purchase and resale of Russian oil. The fresh threat follows Trump’s earlier announcement of a 25 percent tariff on Friday, though he did not specify how much more he would increase it.
The former president, who remains a dominant voice within the Republican Party and is seeking reelection, accused India of profiting from Russia’s ongoing war in Ukraine by reselling imported oil on the open market. "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", Trump posted on Truth Social. "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".
Trump’s frustration appears to stem from Russian President Vladimir Putin’s refusal to end the Ukraine conflict. He has sought to use economic pressure on Moscow’s trading partners particularly India to bring about a ceasefire. He has now moved the deadline for Russia to agree to a ceasefire to later this week, intensifying pressure on nations perceived to be aiding the Kremlin economically.
Despite the aggressive tone toward India, Trump made no mention of China or Turkey both of which also continue to purchase Russian oil in significant volumes. Analysts suggest that applying similar penalties to China could complicate ongoing trade negotiations between Washington and Beijing.
According to the International Energy Agency (IEA), India currently sources nearly 40 percent of its oil imports from Russia, accounting for around 70 percent of Moscow’s oil exports. Prior to the Ukraine war, India sourced less than 0.2 percent of its oil from Russia. Following international sanctions on Moscow, India ramped up purchases, often buying below the $60-per-barrel cap set by the European Union. Reports also indicate that some of the refined oil products have been exported from Indian refineries to other countries.
On Friday, Trump seemed to momentarily soften his stance after reports suggested India’s oil imports from Russia were declining. "I understand that India is no longer going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens," he told reporters.
However, unnamed Indian officials responded over the weekend, asserting that there is no plan to halt Russian oil imports a response that reportedly reignited Trump’s outrage.
Meanwhile, Indian government sources have dismissed claims of halting Russian imports. A senior official stated, "India's energy purchases are driven by national interests and market forces. We do not have any reports of Indian oil firms halting Russian imports".
Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal echoed this stance last week, emphasizing that India’s energy procurement is based on availability and price. "You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics", he said.
Jaiswal added that India’s foreign relations stand on their own merits and should not be judged from the perspective of third countries. “As far as India-Russia relations are concerned, we have a steady and time-tested partnership”, he noted.
Trump’s fiery rhetoric has stirred further geopolitical tension, even leading to a social media clash with former Russian President Dmitri Medvedev. The exchange ultimately resulted in Trump ordering the repositioning of two U.S. nuclear submarines to strategic global locations.
Experts warn that additional tariffs could backfire, risking retaliation from Russia, such as a possible shutdown of the Caspian Pipeline Consortium, which carries Kazakh oil to Western Europe. Moreover, should India the world's third-largest oil importer be forced to reduce Russian imports, global oil prices may surge, impacting economies worldwide, including the U.S.
As the deadline for a possible ceasefire looms, all eyes remain on the evolving situation between Washington, Moscow, and New Delhi.
