New Delhi/Washington, August 6: U.S. President Donald Trump said on Monday he would “substantially” raise tariffs on Indian imports, accusing New Delhi of profiting from Russian oil amid the ongoing war in Ukraine, prompting a sharp rebuttal from the Indian government.
The latest announcement follows an executive order signed by Trump on July 31, imposing a 25% tariff “plus a penalty” on imports from India, citing high Indian tariffs and non-tariff barriers. In a post on the social media platform Truth Social, Trump claimed that India was buying “massive amounts” of Russian oil and reselling it on the open market for “big profits.”
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
Trade experts note that U.S. tariffs are paid by American importers, not by the foreign exporting country.
India’s Ministry of External Affairs (MEA) responded sharply, calling the move “unjustified and unreasonable,” and pointed out that the U.S. and European Union themselves maintain robust trade ties with Russia despite their public criticism.
“India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict,” the MEA said in a statement. “In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability.”
The ministry also defended India’s imports from Russia as a “vital national compulsion,” aimed at ensuring “predictable and affordable energy costs” for Indian consumers.
New Delhi also highlighted that the EU recorded goods trade worth €67.5 billion with Russia in 2024, with services trade reaching €17.2 billion the previous year. Europe’s Russian imports included liquefied natural gas (LNG), fertilizers, mining products, machinery, and chemicals.
The MEA added that the U.S. continues to import key materials such as uranium hexafluoride for its nuclear industry, palladium for electric vehicles, and fertilizers from Russia. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the statement said.
Trump has also flagged India’s long-standing energy and defence purchases from Moscow as points of concern. The 25% tariff, which goes into effect from August 7, is likely to impact India’s competitiveness relative to countries such as Vietnam, Mexico, Indonesia, and the Philippines.
Commerce and Industry Minister Piyush Goyal told Parliament that the government is assessing the implications of the tariff move and is in consultations with stakeholders to determine next steps.
India’s trade with Russia has grown since the beginning of the Ukraine war, but remains significantly lower than Western engagement with Moscow, New Delhi said.
