US President Donald Trump has warned of a steep tariff increase on India within the next 24 hours, citing New Delhi’s continued trade with Russia. In an interview with CNBC on Tuesday (August 5), Trump said he was no longer satisfied with the existing 20% tariff and claimed he had “settled on 25%” but now plans to raise it “very substantially.” His reasoning is India’s purchase and resale of Russian oil, which he accused of fueling Moscow’s war in Ukraine.
India has strongly rejected these accusations, calling them “unjustified and unreasonable.” The Kremlin also stepped in, slamming Trump’s statement as “illegal.” Meanwhile, trade analysts now warn the move could backfire on the US economy and damage long-term ties with India.
Trump’s Rant: Russian Oil and ‘Profiteering’
Speaking on CNBC’s Squawk Box, Trump didn’t hold back. “India has not been a good trading partner,” he said. “They do a lot of business with us, but we don’t do business with them.”
The former president added, “India is buying Russian oil and selling it on the open market for big profits. They don’t care how many people are dying in Ukraine.” He promised a major tariff hike “over the next 24 hours.”
This echoed a post he made a day earlier on Truth Social, where he accused India of “fueling the Russian War Machine.”
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India Hits Back: ‘Unjustified and Unreasonable’
India’s Ministry of External Affairs (MEA) issued a firm response on Monday (August 4). It defended India’s oil imports, pointing to post-war supply disruptions.
“India has been targeted by the US and the EU for importing oil from Russia after the Ukraine conflict began,” the MEA said. “Traditional suppliers shifted to Europe. At that time, the US encouraged Indian purchases to help global energy markets,” it added.
Kremlin’s Response: ‘Sovereign Right’ to Trade
The Kremlin joined the fray on Tuesday, rejecting Trump’s proposed tariff threats as illegal.
“Sovereign countries have the right to choose their trading partners,” said Kremlin spokesperson Dmitry Peskov. He called it “unacceptable” for any country to be forced to cut trade with Russia.
Economic Blowback for the US?
While Trump aims to punish India, experts say the plan could backfire. India is a major buyer of US goods, including defense equipment, technology, and agricultural products.
“Any tariff hike on India will hurt American exports and destabilize a strategic partnership,” warned a former US trade official. With global inflation still a concern, experts also caution that any shock to India’s energy supply chain could raise prices worldwide.
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Trade Tensions Set to Escalate
Trump’s remarks mark a sharp turn in US-India trade ties. Moscow & New Delhi have responded to the diplomatic backlash caused by the tariff threat. The action may exacerbate the precarious balance of global energy politics, strain relationships, and alter trade flows if he follows through.
