Trump Threatens Major Tariff Hike on Indian Goods Over Russian Oil

President Donald Trump has threatened to impose a "major" increase in tariffs on goods imported from India, sharply escalating US-India trade tensions over New Delhi’s continued purchases of Russian oil despite international pressure.

The announcement came Monday in a direct Truth Social post where Trump accused India of not only buying “massive amounts” of Russian crude but also reselling oil for significant profits, allegedly ignoring the humanitarian cost of the ongoing war in Ukraine.

“Because of this, I will be substantially raising the tariff paid by India to the USA,” he stated, without providing further details on the planned hike.

US-India Ties Strained by Energy Policy

This latest declaration follows last week’s commitment from Trump to impose a 25% tariff on Indian imports and an unspecified additional penalty. Despite these warnings, Indian officials have made clear they intend to maintain Russian oil imports in the interest of national energy security and price stability for Indian consumers. Government sources described the US threats as unlikely to alter India’s core sourcing strategy.

Indian refiners, including state-owned and private companies, continue to procure Russian crude at discounted rates, making Russia India’s largest oil supplier by volume. These imports have helped cushion Indian energy prices but drawn scrutiny from Western nations seeking to limit Russia’s global oil revenues.

Did you know?
In 2023, India became Russia’s largest oil customer, buying up to 1.8 million barrels per day, more than 10 times its pre-war Russian oil imports.

Trade Impact and Diplomatic Responses

While details of the proposed tariffs remain uncertain, sectors such as textiles, auto parts, and seafood exports may face increased pressure if new duties are implemented. Analysts note that Indian exporters have already begun diversifying toward Europe, the Middle East, and Southeast Asia in anticipation of potential US trade barriers.

The Indian government so far has not commented publicly on the latest US warning. Behind the scenes, officials are said to be assessing the risk of further escalations and weighing possible countermeasures, though the priority remains preserving critical export flows and supporting domestic refiners’ access to affordable crude.

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Strategic Stakes and Global Ripple Effects

The episode underscores the intricate balance both countries must maintain. For India, energy independence has trumped diplomatic pressure. For the US, Trump’s push for higher tariffs signals a willingness to wield trade tools in pursuit of broader geopolitical aims, even risking straining relations with a key Indo-Pacific partner.

As both nations eye upcoming negotiations and the world’s energy map rapidly shifts, the repercussions of Trump’s tariff threat could reshape not only bilateral economic ties but also global oil and trade routes. The world’s biggest democracies now find their strategic relationship tested in new and unpredictable ways.