Donald Trump targets India over Russian oil, plans major tariff hike; New Delhi calls out US, EU’s double standards
Nancy Jaiswal | Aug 05, 2025, 20:09 IST
Highlight of the story: US President Donald Trump has announced plans to raise tariffs on India “very substantially” within 24 hours, citing high trade barriers and India’s continued oil trade with Russia. India responded strongly, calling the move unjustified and inconsistent.
U.S. President Donald Trump has announced that he will impose a significantly higher tariff on India within the next 24 hours, citing India's continued purchase of oil from Russia and what he calls high trade barriers. In an interview with CNBC’s Squawk Box on August 5, Trump said India has “not been a good trading partner” and warned of imminent action.
He added that India’s business dealings with the U.S. are unbalanced: “They do a lot of business with us, but we don’t do business with them.” He had previously settled on a 25% tariff on Indian goods but said he intends to raise it further due to India’s oil purchases from Russia.
Trump emphasized that India’s oil trade with Russia is a major issue. “They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy,” he said.
Although India offered zero tariffs in the latest trade discussions, Trump dismissed the offer, saying it doesn’t compensate for India's energy dealings with Moscow.
A day earlier, Trump said India is purchasing large volumes of Russian oil and profiting from its resale — a claim that adds to his rationale for a steeper tariff hike.
The ministry pointed out that U.S. imports include uranium hexafluoride for nuclear power, palladium for electric vehicles, fertilizers, and chemicals. Similarly, the EU continues to trade in Russian energy, fertilizers, chemicals, steel, and machinery.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the MEA stated.
On August 1, Trump signed an executive order titled “Further Modifying The Reciprocal Tariff Rates,” imposing a 25% tariff on Indian goods along with more than 60 other countries. The order did not specify the additional “penalty” Trump mentioned earlier for India’s military and energy trade with Russia.
Trump had previously remarked that “India is our friend,” but criticized its consistently high tariffs and non-monetary trade barriers, calling them “obnoxious.”
Meanwhile, White House Deputy Chief of Staff Stephen Miller supported Trump’s views in a Fox News interview, stating that it is “not acceptable for India to continue financing” the war in Ukraine through its oil imports from Russia.
To stay updated on the stories that are going viral follow Indiatimes Trending.
He added that India’s business dealings with the U.S. are unbalanced: “They do a lot of business with us, but we don’t do business with them.” He had previously settled on a 25% tariff on Indian goods but said he intends to raise it further due to India’s oil purchases from Russia.
Oil from Russia: The key sticking point in India-U.S. trade relations
Trump emphasized that India’s oil trade with Russia is a major issue. “They’re fuelling the war machine. And if they’re going to do that, then I’m not going to be happy,” he said.
Although India offered zero tariffs in the latest trade discussions, Trump dismissed the offer, saying it doesn’t compensate for India's energy dealings with Moscow.
A day earlier, Trump said India is purchasing large volumes of Russian oil and profiting from its resale — a claim that adds to his rationale for a steeper tariff hike.
India responds: Calls out double standards in global trade criticism
The ministry pointed out that U.S. imports include uranium hexafluoride for nuclear power, palladium for electric vehicles, fertilizers, and chemicals. Similarly, the EU continues to trade in Russian energy, fertilizers, chemicals, steel, and machinery.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the MEA stated.
Executive order signed: What it means for India
On August 1, Trump signed an executive order titled “Further Modifying The Reciprocal Tariff Rates,” imposing a 25% tariff on Indian goods along with more than 60 other countries. The order did not specify the additional “penalty” Trump mentioned earlier for India’s military and energy trade with Russia.
Trump had previously remarked that “India is our friend,” but criticized its consistently high tariffs and non-monetary trade barriers, calling them “obnoxious.”
Broader geopolitical tensions continue
Meanwhile, White House Deputy Chief of Staff Stephen Miller supported Trump’s views in a Fox News interview, stating that it is “not acceptable for India to continue financing” the war in Ukraine through its oil imports from Russia.
To stay updated on the stories that are going viral follow Indiatimes Trending.