U.S. President Donald Trump has escalated tensions with India by threatening to significantly increase tariffs on Indian exports in response to New Delhi’s continued purchases of Russian crude. India now sources nearly 40% of its oil imports from Russia, according to trade data.
In a statement posted on social media, Trump accused India of profiting from Russian oil, saying: “They don’t care how many people in Ukraine are being killed by the Russian War Machine… I will be substantially raising the Tariff paid by India to the USA.” His remarks follow the recent imposition of a 25% tariff on Indian goods, which Trump now suggests may increase even further.
India has responded angrily, calling the move “unjustified” and “unreasonable.” Officials defended the oil imports as necessary for domestic economic stability, pointing out that Russia’s discounted crude has helped keep fuel prices low for Indian consumers—and that Western countries themselves continue trade with Russia.
The growing U.S.-India trade conflict centers not only on energy ties but also on India’s balancing act between strategic autonomy and global partnerships. Analysts warn that Trump’s hardline stance—alongside possible secondary tariffs on other nations buying Russian oil—could affect up to $18 billion in Indian exports annually and escalate diplomatic friction between the major powers.
For now, Indian businesses remain cautiously optimistic, with new enterprises showing resilience despite the mounting pressure. India has reaffirmed its commitment to economic sovereignty, rejecting demands to alter its foreign policy under external coercion.
