Trump Threatens Higher Tariffs on India Over Russian Oil Imports

President Donald Trump has escalated economic pressure on India by announcing plans to significantly raise U.S. tariffs on Indian imports, citing the country’s continued trade in Russian oil as a violation of international norms and a disregard for Ukrainian civilian suffering [1]. The move follows India’s role in processing and reselling Russian crude oil, which has allowed Moscow to bypass Western sanctions and sustain its war effort in Ukraine [2]. Trump, using his social media platform Truth Social, accused India of engaging in "massive" oil purchases and resales for profit, framing it as an economic endorsement of Russian aggression [3].

The current 25% tariff on Indian imports, which became effective on August 1, is expected to increase substantially, though no official figures have been released. Trump emphasized that India will face a “penalty” for its economic alignment with Russia [4]. This announcement aligns with Trump’s broader strategy to isolate Russia economically and push it toward a ceasefire in Ukraine. Earlier, he issued a 10-day ultimatum to Russia to end the war, with the threat of imposing 100% tariffs on Russian goods if the deadline was not met [5].

India, as the world’s third-largest economy, has become a key buyer of Russian oil, particularly through its state-backed self-sufficiency initiatives. The Nayara Energy refinery in India, partially owned by Russia’s Rosneft, processes nearly 400,000 barrels of oil per day [6]. The EU recently expanded sanctions to include this facility, reflecting a coordinated international effort to cut off Russia’s economic lifelines. Despite this, India has shown little willingness to back down, instead doubling down on its "Swadeshi" or self-reliance agenda as a countermeasure to U.S. pressure [7].

Trump’s tariff escalation comes amid growing volatility in global oil markets. Rising OPEC+ production and weakening demand forecasts have already created uncertainty, and the added pressure on India’s oil imports is exacerbating these concerns [8]. Analysts warn that the move could have broader implications for global trade and energy markets, particularly as the U.S. continues to tighten its economic noose around countries supporting Russia [9].

The White House has indicated that the so-called “secondary tariffs” will include 100% levies on Russian imports and sanctions against countries that continue to buy Russian oil. While U.S.-Russia trade is relatively small, these measures could represent some of the most severe sanctions yet [10]. India’s response to the tariff threat remains unclear, but the country faces a difficult balancing act between maintaining strategic partnerships and protecting its economic interests.

As Trump continues to intensify his economic campaign against Russian oil buyers, the situation highlights the deepening geopolitical tensions surrounding the Ukraine war and the global energy landscape [11].

Source:

[1] The Hill – https://thehill.com/homenews/administration/5435073-trump-imposes-tariffs-india-oil/

[2] mezha.net – https://mezha.net/eng/bukvy/trump-plans-higher-tariffs-on-india-over-russia-oil-support/

[4] The Economic Times – https://m.economictimes.com/news/economy/policy/donald-trump-tariffs-power-indias-swadeshi-drive/articleshow/123092380.cms

[5] Crude Oil Price – https://oilprice.com/Energy/Oil-Prices/Trump-Putin-Showdown-Fuels-Oil-Price-Uncertainty.html

[6] Devdiscourse – https://www.devdiscourse.com/article/politics/3529283-trump-targets-india-russia-trade-with-tariff-hike

[8] Yahoo Finance – https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-hell-send-letters-to-over-150-countries-plans-tariff-barrage-aug-1-200619164.html

[9] Devdiscourse – https://www.devdiscourse.com/article/business/3529271-trump-targets-indias-oil-trade-with-russia