Washington, August 4, 2025 – Former U.S. President Donald Trump announced plans to substantially increase tariffs on Indian imports, accusing New Delhi of undermining Western sanctions by purchasing Russian oil and re-exporting it for profit.
In a statement shared on Truth Social, Trump claimed that India is not only importing massive volumes of Russian crude, but also reselling much of it on the open market at a premium. He criticized India’s approach, suggesting that it shows indifference toward the ongoing war in Ukraine. “They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
Trump had already imposed a 25% tariff on Indian goods effective August 1. The new announcement signals an intention to go further, although he has not specified by how much. The tariffs are part of a broader economic agenda under his “America First” doctrine, with energy geopolitics now firmly tied into U.S. trade actions.
Trump aides have also echoed the accusation. Deputy Chief of Staff Stephen Miller said the administration views Indian energy purchases from Russia as a direct threat to U.S.-led efforts to isolate Moscow. He added that the White House would not tolerate what he described as “backdoor funding” of the Russian war machine through global oil resale schemes.
This marks a significant shift from earlier in the year, when Trump and Indian Prime Minister Narendra Modi shared what was described as a cordial diplomatic relationship. During Modi’s February 2025 visit to Washington, both sides expressed commitment to deepening bilateral trade and strategic ties. That optimism has now given way to sharp policy divergence, with oil and defense deals at the heart of the fallout.
India exported roughly $87 billion in goods to the U.S. last year, with a trade surplus of $46 billion. Key export sectors such as pharmaceuticals, automotive components, gems, and mineral fuels are expected to be hit hardest by any tariff hikes. Indian officials, responding to Trump’s statement, said the government would continue buying oil based on national interests and market dynamics. They defended their relationship with Russia and emphasized India’s sovereign right to diversify its energy sources.
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Analysts have warned that the rift could have long-term strategic consequences. Defense cooperation, Indo-Pacific alignment, and technology sharing agreements could be strained if the tariff war escalates. Some in New Delhi are now urging policymakers to boost ties with Europe, the Gulf, and ASEAN countries to offset potential U.S. losses.
The announcement also comes amid growing momentum in Congress for more aggressive economic pressure against countries perceived to be enabling the Kremlin. A bill under debate, the Sanctioning Russia Act, proposes extreme tariff measures—up to 500%—on nations that continue to import or resell Russian oil.
With geopolitical tensions deepening, the Trump administration appears to be using tariffs not merely as economic leverage but as a tool to reshape global alliances. India’s balancing act between East and West now faces its most serious test.