WASHINGTON, August 6: U.S. President Donald Trump has threatened to impose higher tariffs on India within the next 24 hours, citing New Delhi’s continued purchase of Russian oil and its alleged resale of oil-derived products for profit. The warning comes even as Trump claimed India would soon offer zero tariffs on U.S. goods.
Speaking to CNBC on Tuesday morning, Trump said, “I think I’m going to raise [tariffs] very substantially over the next 24 hours, because they’re buying Russian oil.” He added, “India went from the highest tariffs ever to zero tariffs, and they can go in. But that’s not good enough because of what they’re doing with oil; it’s not good.”
Trump, who had already announced a 25% tariff on India last week, did not clarify the exact level of the new tariff he plans to impose. However, he appeared to single out India despite other major countries like China, Turkey, and the European Union also continuing to import Russian oil.
According to Trump, India’s resale of products derived from Russian oil at high profits is fuelling Russia’s war effort in Ukraine. “They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy,” he said. He also hinted at further tariff action on Indian pharmaceuticals, saying duties could go up to 200% within two years. India exported nearly $8.7 billion worth of pharmaceuticals to the U.S. last year.
India’s External Affairs Ministry responded firmly, describing Trump’s remarks as “unjustified and unreasonable.” Highlighting the West’s continued trade with Russia, the Ministry pointed out that the European Union traded goods worth $67.5 billion with Russia last year. It also noted that the U.S. still imports Russian uranium hexafluoride, palladium, fertilizers, and chemicals.
“In this background, the targeting of India is unjustified and unreasonable,” the Ministry said. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.” However, the Ministry refrained from commenting on China’s ongoing purchase of Russian oil.
President Trump, however, appeared to ease his stance on China, stating that a trade deal with Beijing was coming “very soon.”
India, the largest importer of Russian oil, currently accounts for 70% of Russia’s oil exports, placing it in a sensitive geopolitical position as tensions between the U.S. and Russia persist. The India-U.S. trade relationship has also come under fresh scrutiny. According to the U.S. Trade Representative, bilateral trade in goods stood at $128.9 billion last year. U.S. exports to India reached $41.5 billion, while India’s exports to the U.S. rose to $87.3 billion, leaving the U.S. with a $45.8 billion trade deficit.
When asked about the ongoing trade negotiations with India, Trump said the main issue was India’s “high tariffs.” “They have the highest tariff of anybody. We do very, very little business with India because their tariffs are so high,” he said. “So India has not been a good trading partner, because they do a lot of business with us, but we don’t do business with them.”
Russia also weighed in on the issue, condemning Trump’s threats. Kremlin spokesperson Dmitry Peskov said, “We believe that sovereign countries should have, and have the right to choose, their own trade partners, partners in trade and economic cooperation.”
In an earlier comment posted on X, China’s Foreign Ministry reiterated its own position: “China will always ensure its energy supply in ways that serve our national interests.”
