KATHMANDU, Aug 5: US President Donald Trump has vowed to "substantially" raise tariffs on Indian imports, escalating tensions between the two nations over India’s continued energy trade with Russia.
Trump made the remarks in a social media post on Monday, accusing New Delhi of buying and reselling large volumes of Russian oil “for big profits,” amid the ongoing war in Ukraine.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote. “Because of this, I will be substantially raising the tariff paid by India to the US. Thank you for your attention to this matter!!!”
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Although the US president did not specify the scale or timing of the proposed tariff hikes, the move signals a sharp turn in US-India relations. According to US trade data, India exported goods worth $87.4 billion to the US in 2024.
The latest threat follows Trump’s announcement last week of a 25 percent tariff on Indian goods, citing India’s purchase of Russian oil and military equipment as well as retaliatory tariffs imposed on US products.
In response, India rejected the criticism, calling it “unjustified and unreasonable.” India's Ministry of External Affairs, in a statement on Monday, defended its energy trade with Russia, arguing it was aimed at ensuring affordable and predictable energy prices for Indian consumers.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” said MEA Spokesperson Randhir Jaiswal. He further pointed out that several Western countries including the US and European nations continue to import Russian energy products despite the war.
India has emerged as one of the largest buyers of Russian crude oil since the war in Ukraine began in February 2022, often refining and exporting it allegedly to other markets.
