In a strongly worded post on his social media platform Truth Social, U.S. President Donald Trump has announced that he will be “substantially raising” the tariffs paid by India to the United States. The move, he claims, is in response to India’s continued purchase of Russian oil and its subsequent resale in the international market for hefty profits.
The declaration, made on Sunday, August 4, marks a sharp escalation in Trump’s trade rhetoric and could potentially strain diplomatic and economic ties between the two countries. Trump, who has returned to office with a renewed emphasis on "America First" economic policies, minced no words in his post.
“India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,” Trump wrote. “I will be substantially raising the Tariff paid by India to the USA.”
India has found itself in Trump’s crosshairs in the past as well. During his first term, Trump frequently expressed dissatisfaction with U.S.-India trade relations, at one point calling India the “tariff king.” He had earlier removed India from the Generalized System of Preferences (GSP), a trade program that allowed duty-free exports of certain goods to the U.S., citing a lack of reciprocal access to Indian markets.
With this latest announcement, Trump appears to be reviving that hardline approach. His administration’s concern centers around India’s continued import of discounted crude oil from Russia a trade route that has seen a significant boost since the onset of the Russia-Ukraine conflict.
While the West, led by the U.S., imposed sanctions and price caps on Russian energy exports, India has continued its energy deals with Moscow, citing national interest and energy security. Trump’s post suggests he sees India’s resale of this oil as an economic maneuver that undermines American interests and global efforts to restrict Russian revenues.
Trump’s tariff threat could have significant implications for U.S.-India trade, which crossed $200 billion in 2023. Key Indian exports to the U.S. including pharmaceuticals, textiles, gems, and machinery could face higher costs, potentially impacting small and medium enterprises.
Diplomatically, the move may complicate India’s strategic balancing act between its growing partnership with the U.S. and its historical ties with Russia. It also comes at a time when both nations are working together on critical fronts like defense, technology transfer, and Indo-Pacific security.
As of now, there has been no official response from the Indian government. However, experts suggest the development may trigger a round of high-level talks between Washington and New Delhi.
Whether this tariff hike becomes policy or remains a pressure tactic remains to be seen but the message from President Trump is clear: India’s Russian oil strategy may come at a high cost.
