Reintroducing geopolitics and international security into his trade war economic policies, President Trump once again threatened to increase taxes on India for its imports of Russian oil on Monday.
Trump stated on Truth Social that India is purchasing large quantities of Russian oil and then selling it on the open market for substantial profits. Russian War Machine casualties in Ukraine are of little concern to them. I will be significantly increasing the tariff that India pays to the US as a result of this. I really appreciate that you’re paying attention to this issue.
A ceasefire agreement between Russia and Ukraine is due on August 8, and Trump’s post comes days before that deadline. In the event that President Vladimir Putin does not promptly end hostilities, the president has warned that nations that import products, mainly energy, from the country might face “secondary tariffs” of up to 100%.
However, the Russian government is presently attempting to negotiate trade treaties with China and India, two of Russia’s closest economic partners.
The Indian Ministry of External Affairs issued a statement stating, “The targeting of India is unjustified and unreasonable.” The statement went on to criticize the US and EU of being hypocritical by focusing on New Delhi. The fact that countries who are critical of India are also trading with Russia is telling. According to the statement, this kind of commerce is not even a crucial national obligation, unlike our situation.
India’s government has stated that its imports are done in order to keep energy costs predictable and affordable for Indian consumers.
It’s the second time in less than a week that Trump has targeted India over its relations with Russia; this warning is his second attempt. In response to what he saw as persistent trade obstacles, Trump declared last Wednesday that he would be imposing 25% tariffs on New Delhi. However, he foresaw a further penalty for India’s military equipment trade with Moscow.
The White House has been dropping hints for months about a possible trade deal with India, but the tariff increases are still on the horizon. A visit to the nation by Vice President JD Vance in April, only weeks following Trump’s tariff “liberation day,” further increased hope that a deal was on the horizon.