US President Donald Trump vowed to “significantly raise tariffs” against India on Monday over its continued purchase of Russian oil. The assertion came days after the POTUS imposed a 25% tariff on goods imported from India and indicated plans to introduce an unspecified’ penalty against the world’s fifth-largest economy.
“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. Because of this, I will be substantially raising the Tariff paid by India to the USA,” he wrote on Truth Social.
The US President had earlier announced a 25% tariff as well as secondary sanctions for India starting from August 1 — accusing New Delhi of having “the most strenuous and obnoxious non-monetary trade barriers” of all countries and cited its ties with Russia to explain the decision. The POTUS insisted that the country remained a “friend” — while repeatedly flagging the “massive” US-India trade deficit.
India to keep purchasing Russian oil?
India has faced pressure from the West to distance itself from Moscow since Russia invaded Ukraine in early 2022. New Delhi has resisted, citing its longstanding ties with Russia and economic needs. The Indian foreign ministry has repeatedly insisted in recent weeks that the country would take “all necessary measures to safeguard its national interests and economic security” — pushing back against “double standards” on the matter.
A Reuters report from last week had suggested that Indian Indian state refiners had paused Russian oil purchases after Trump made the tariff announcement in mid-July.
“I understand that India is no longer going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens,” Trump had told reporters on Saturday after the details emerged.
Multiple source-based reports, however, clarified over the weekend that India would continue to purchase oil from Russia despite the recently imposed tariffs.
India has increased oil imports from Russia marginally during the first half of this year with private refiners Reliance Industries Ltd and Nayara Energy making about half of the overall purchases from Moscow. The country to be the top supplier to India — accounting for about 35% of its overall supplies — followed by Iraq, Saudi Arabia, and United Arab Emirates.
(With inputs from agencies)