Washington DC, August 05: US President Donald Trump on Tuesday announced that the United States will “very substantially” raise tariffs on Indian imports within the next 24 hours, citing India’s continued purchase of Russian oil. Trump accused India of “fueling the war machine” by buying oil from Moscow and said the move is aimed at pressuring New Delhi over its energy ties with Russia.
Donald Trump Issues Fresh Threats
Donald Trump told CNBC in an interview, "With India, what people don't like to say about India, they are the highest tariff nation. They have the highest tariff from anybody. We do very very little business with India because their tariffs are so high."
He further stated, "India has not been a good trading partner, because they do a lot of business with us, but we don't do business with them. So we settled on 25 percent but I think I'm going to raise that very substantially over the next 24 hours, because they're buying Russian oil and fueling the war machine, if they are gonna do that, I am not gonna be happy."
Trump's warning came within hours after India issued a strong 6-point response over his earlier threats of substantially raising tariffs.
Ministry of External Affairs (MEA) Issued Statement and said:
India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability.
2. India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation. However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.
3. The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023. This is significantly more than India’s total trade with Russia that year or subsequently. European imports of LNG in 2024, in fact, reached a record 16.5mn tonnes, surpassing the last record of 15.21mn tonnes in 2022.
4. Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment.
5. Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals.
6. In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.
