President Donald Trump announced his plan to “substantially raise tariffs” on Indian exports to the United States, in response to India’s continued purchases of Russian oil. New Delhi denounced the move as unfair, escalating tensions between the two major economies uk.finance.yahoo.com+15Reuters+15The Economic Times+15.

On Monday (August 4, 2025) local time, Trump posted on his Truth Social social media platform: “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. They don’t care how many people in Ukraine are being killed by the Russian war machine.” He added, “Because of this, I will be substantially raising the tariff paid by India to the USA.” He did not clarify the exact hike Reuters+9Reuters+9dawn.com+9.

Earlier, the previous week, Trump had already announced a 25% tariff on imports from India—one of the highest rates imposed on any major economy—and threatened additional penalties if India continued purchasing Russian oil uk.finance.yahoo.com+6Reuters+6time.com+6.

This threat came just before the August 8 deadline for Russia to agree a ceasefire with Ukraine. The U.S. government warned it would enforce secondary sanctions against countries importing Russian energy if Moscow did not surrender en.wikipedia.org.

U.S. and Ukrainian-aligned analysts view India’s oil imports as indirectly subsidizing the Russian war effort, weakening pressure on Moscow to end the conflict, which has now entered its fourth year Reuterstime.com.

India has been a key target in Trump’s strategy to end the war. Prime Minister Narendra Modi—who had developed a friendly rapport with Trump—has pushed back, urging Indians to support domestic products and signaling India will continue importing Russian oil Reuterstime.com.

In a social media post later that night, India’s Foreign Ministry criticized the EU and the U.S. for continuing to buy energy and other goods from Russia, noting that such trade is not a national obligation. The ministry explained that India turned to Russian oil after traditional suppliers redirected supplies to Europe following the outbreak, and even stated that the U.S. had encouraged India to import Russian energy to stabilize global energy markets.

Officials said the targeting of India was unjustified and unreasonable, affirming India would take all necessary measures to protect its national and economic interests dawn.com+3Reuters+3Reuters+3.

India became Russia’s top buyer of crude since the 2022 invasion of Ukraine, attracted by steep discounts. According to ship tracking data compiled by Bloomberg via Reuters, India imported an average of around 1.75 million barrels per day from January to June—an increase of about 1% year-on-year Reuters+4Reuters+4Reuters+4.

Refiners exported roughly 1.4 million barrels per day of refined fuel during the first half of 2025, about 40% diesel and 30% gasoline and blends. However, determining exactly how much of that fuel originated from Russian crude is difficult, given that refineries blend multiple crude grades and produce diverse outputs ReutersReuters.

In response to the geopolitical tension, India’s largest refining consortium reportedly placed sudden, large orders for several million barrels of crude from the U.S., Canada, and the UAE for September delivery Reuters.

Trump has escalated trade pressure not only with tariffs but also through threats of secondary sanctions targeting countries like India, China, and Brazil that purchase Russian oil—possibly imposing tariffs up to 100% unless Russia agrees to peace by August 8, 2025 Reutersen.wikipedia.org.

Overall, Trump’s escalating tariff threats came as a surprise to India after months of trade negotiations. India has signaled readiness to continue talks for a possible lower tariff, including increasing imports of U.S. gas, communications equipment, and gold to reduce its trade surplus with the U.S.