Islamabad 5 August : U.S. President Donald Trump announced he will substantially increase tariffs on imports from India, citing New Delhi’s purchase and resale of discounted Russian oil.
According to news reports , Trump accused India of profiting from the trade amid the conflict in Ukraine and declared he would “substantially raise” the tariff paid by India to the U.S.
Trump claimed in a post on Truth Social that India is effectively fueling the “Russian war machine” and showing indifference to Ukrainian civilian casualties. The intensified tariff threat adds to last week’s decision to impose a 25% duty on Indian goods, and precedes warnings of harsher penalties, potentially reaching 100% tariffs, for countries importing Russian energy.
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India swiftly rejected the accusations, calling the U.S. targeting “unjustified and unreasonable.” The country defended its energy strategy as a response to global market shifts post-Ukraine war, aimed at securing affordable energy for its citizens. Officials noted that discount Russian oil constitutes a significant share of India’s imports, and emphasized their sovereign right to pursue national interests.
This escalation amplifies tensions in the once-close U.S.–India partnership. Relations have deteriorated sharply in recent weeks, even as Trump deepened ties with Pakistan and forged new energy agreements. Analysts warn that the dispute could undermine strategic cooperation developed over decades.
Why It Matters
- The U.S. may now be using trade policy as leverage over India’s energy choices amid the Russia‑Ukraine war.
- Trump’s broader strategy includes targeting BRICS economies and countries continuing Russian energy trade.
- Rising trade frictions could affect Indian exporters, particularly in sectors like agriculture, autos, and pharmaceuticals, where up to 87% face risk.
- India remains resistant to pressure, maintaining a non-aligned stance and defending its economic autonomy.
