Trump posted on Truth Social that India buys “massive amounts” of Russian crude. He claimed the country resells much of it for huge profits. “They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote.
Because of this, Trump said he will “substantially raise the Tariff paid by India to the USA.” The move followed a 25% tariff on Indian exports that began on August 1, after trade talks collapsed. According to Trump, India enforces some of the world’s highest tariffs and non-monetary trade barriers.
He criticised India for its military and energy purchases from Russia, calling them “all things not good!” Trump warned of 100% tariffs or secondary sanctions if Russia doesn’t agree to a ceasefire by August 8. Countries continuing to buy Russian energy would also face penalties.
India’s Ministry of External Affairs called the move “unjustified and unreasonable.” Officials said the oil trade helps stabilise domestic prices and protect affordability. They added that the U.S. and EU also conduct trade with Russia when not facing urgent national pressure.
Foreign Ministry spokesperson Randhir Jaiswal stated that India’s global partnerships stand on “their own merit.” He insisted they shouldn’t be viewed “from the prism of a third country.” Highlighting long-standing ties with Moscow, Jaiswal described the relationship as “steady and time-tested.”
He expressed confidence that U.S.–India relations will continue progressing. Meanwhile, Trump announced the dispatch of special envoy Steve Witkoff to Russia this week for ceasefire discussions. In another response, Trump repositioned two U.S. nuclear submarines after threatening comments by Dmitry Medvedev.
In the first half of 2025, India imported roughly 1.75 million barrels of Russian oil daily. Indian refiners re-exported a large volume of this crude as refined fuel, including diesel, gasoil, and gasoline. That raised concerns about India’s profit margins from Russian supplies.
At a rally, Modi promoted self-reliance and defended domestic consumption policies. He tied the message to his ongoing “Make in India” initiative. His government has also refused U.S. access to India’s dairy and agricultural markets, citing political and religious sensitivities.
Analysts say this standoff reflects India’s multipolar foreign policy and desire for economic independence. Although sanctions may have limited the GDP impact, the damage to diplomatic relations could be more serious. Both sides appear unwilling to compromise.
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