Former U.S. President Donald Trump has announced plans to “substantially” increase tariffs on Indian goods, criticizing New Delhi for continuing to buy and resell Russian crude oil. In a post on Truth Social on August 4, Trump accused India of making “massive profits” from discounted Russian oil while ignoring the suffering caused by the war in Ukraine.
The warning comes after Trump’s earlier decision to impose a 25% tariff on Indian exports starting August 8. He also hinted at further penalties connected to India’s trade in energy and defense with Moscow. Trump’s aide, Stephen Miller, echoed these remarks, claiming that India, alongside China, is among the top consumers of Russian oil and is indirectly helping fund Russia’s war efforts.
India Stands Firm
Indian officials have responded by reaffirming that the country will not halt Russian oil imports, arguing that affordable energy is crucial for its economic stability. The Commerce Ministry stated it is assessing the impact of these tariffs while emphasizing the protection of Indian businesses, particularly small and medium enterprises.
Broader Implications
India’s dependence on Russian crude has grown significantly since 2022, now making up over 30% of its oil imports. Analysts warn that reducing this reliance due to U.S. pressure could raise India’s annual fuel costs by $9–11 billion, triggering inflation and hurting trade margins.
What’s Next?
The proposed tariffs may strain U.S.–India trade relations and complicate ongoing negotiations. It remains to be seen whether India will adjust its energy policy or explore retaliatory trade measures. Meanwhile, this move underscores how geopolitics, trade, and energy security are becoming deeply intertwined in global diplomacy.
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