Trump Threatens Substantial Tariff Hike on India Over Russian Oil Purchases

Donald Trump has warned of a "very substantial" increase in tariffs on imports from India within the next 24 hours. The former US President cited New Delhi's continued purchase of Russian oil as the primary reason, stating that India is "fuelling the war machine". He added that if this continues, he would "not be happy".

Trump previously announced a 25 per cent tariff along with an unspecified "penalty" on India for its trade with Russia, a declaration made ahead of an August 1 deadline. He has consistently criticised India, labelling it "not a good trading partner" and the "highest tariff nation".

This sentiment stems from what Trump perceives as an imbalance where the US does "very, very little business" with India due to its high tariffs, despite India conducting significant trade with the US. In 2024, total goods trade between the two nations reached $129.2 billion, with the US facing a trade deficit of $45.7 billion.

India has emerged as the largest buyer of seaborne crude from Russia, importing approximately 1.75 million barrels per day between January and June this year, though this volume slightly decreased in July. In response to the criticisms, India's Ministry of External Affairs defended its imports as "a necessity compelled by the global market situation," noting that criticising countries are also "indulging in trade with Russia".