WASHINGTON/NEW DELHI — U.S. President Donald Trump on Tuesday warned of a significant increase in tariffs on Indian imports within the next 24 hours, citing New Delhi’s continued purchases of Russian oil. The move marks a sharp escalation in trade tensions between the two countries.
“They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy,” Trump told CNBC, criticizing India’s energy ties with Russia amid the ongoing Ukraine war. Trump had already imposed a 25% tariff on Indian goods in July and now plans to raise that rate “very substantially.” However, he did not specify the new rate.
India’s ruling Bharatiya Janata Party (BJP) and the main opposition Congress party issued rare joint condemnation of the U.S. president’s remarks. “The time has come to call out this constant bullying and hectoring,” said Manish Tewari, a senior Congress leader. BJP Vice President Baijayant Jay Panda responded on social media, quoting Cold War-era diplomat Henry Kissinger: “To be an enemy of America can be dangerous, but to be a friend is fatal.”
India’s Foreign Ministry pushed back strongly, saying the country was being unfairly singled out. “It is unjustified to single out India,” the ministry said in a statement, highlighting that both the U.S. and EU continue trading with Russia despite their public condemnation of the war.
The ministry noted that the EU conducted €67.5 billion ($78 billion) in trade with Russia in 2024, including record LNG imports. It also pointed out U.S. purchases of Russian uranium, palladium, fertilizers, and chemicals.
The growing rift follows Trump’s initial tariff announcement on July 31 and his new threat of secondary sanctions on nations buying Russian energy unless Moscow takes steps to end the war.
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India remains the largest buyer of seaborne Russian crude, importing approximately 1.75 million barrels per day from January to June 2025 — a 1% increase year-on-year. New Delhi has maintained that its Russian oil imports are essential for its economic stability and energy security.
High-level diplomatic engagements between India and Russia are expected to continue, with National Security Adviser Ajit Doval and Foreign Minister S. Jaishankar reportedly preparing visits to Moscow.
Meanwhile, financial markets in India showed signs of unease over the rising tensions. The benchmark BSE Sensex dropped 0.38%, and the rupee weakened by 0.17% against the dollar.
With Trump’s 2024 election victory reshaping U.S. foreign policy priorities, the latest trade dispute underscores the fragile balance India faces in navigating its geopolitical partnerships amid shifting global alliances.
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