Trump Tariff: US Secretary of State Marco Rubio has voiced strong concerns over India’s procurement of discounted Russian oil, stating that it helps sustain Moscow’s war effort in Ukraine and has become “most certainly a point of irritation” in Washington–Delhi ties. Trump announced 25% tariffs on Indian goods, coupled with unspecified penalties for India’s continued military and energy trade with Russia.
What did Rubio say about the India-US trade deal?
In an interview with Fox Radio, Rubio emphasised that India remains an ally and strategic partner, yet added, “Like anything in foreign policy, you’re not going to align 100 per cent of the time.” He acknowledged India’s significant energy needs—oil, coal, and gas—and pointed out that Russia remains a major supplier because its oil is heavily discounted amid sanctions.
Rubio bluntly noted that while the oil is cheap, its purchase contributes to Russia’s capability to wage war, saying, “That is helping them sustain the Russian war effort.” According to him, this energy trade is the bone of contention in bilateral ties.
Rubio’s remarks followed Treasury Secretary Scott Bessent’s own expression of frustration, referencing not only India’s energy ties with Russia but also its resistance to opening sensitive sectors such as agriculture and dairy to US access.
India-Russia ties
India’s longstanding military and economic relationship with Russia dates back to the Cold War. Between 2020 and 2024, Russia accounted for around 38% of India’s arms imports, and nearly a third of Russian oil exports went to India in late 2024. These ties have drawn criticism from Washington as inconsistent with US efforts to counter Russia’s aggression in Ukraine.
With only hours to spare before his self-imposed August 1 trade deadline, the White House unveiled a sweeping new global tariff policy late on 31 July, only to postpone the start of duties to 7 August—allowing Customs and Border Protection extra time to update its systems.
Under the new executive order, imports from countries with which the United States runs a trade surplus will face a universal 10 per cent tariff, continuing the baseline rate launched during the April “Liberation Day” tariffs.