Less than a week after announcing a 25% tariff on Indian exports “plus a penalty,” U.S. President Donald Trump has intensified his criticism of India, accusing it of profiting from Russian oil sales and indirectly funding Moscow’s war in Ukraine.
On Monday (August 4, 2025), Trump posted on Truth Social:
“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.”
Trump warned that he would be “substantially” raising tariffs on India, just days after signing orders that imposed new rates ranging from 10% to 40% on several trading partners, including 35% on Canada and 25% on Mexico, to take effect August 8. India is currently facing a 25% tariff on exports, with Trump signaling additional penalties.
White House Hardens Its Stand
White House Deputy Chief of Staff Stephen Miller echoed Trump’s stance in an interview with Fox News:
“People would be shocked to learn that India is basically tied with China in purchasing Russian oil. India portrays itself as being one of our closest friends in the world, but they don’t accept our products, they impose massive tariffs, engage in cheating on immigration policies harmful to American workers, and continue purchasing Russian oil,” Miller said.
He added that while Trump values his relationship with Prime Minister Narendra Modi, the U.S. must “get real” about India’s financing of Russia’s war.
“President Trump has said all options are on the table—diplomatic, financial, and otherwise—to address this and achieve peace,” Miller noted.
Trade Tensions and Tariff Landscape
Trump’s tariff order, signed July 31, represents a sweeping overhaul of U.S. trade relationships. According to U.S. Trade Representative Jamieson Greer, these rates are “pretty much set” and will take effect this week.
Tariff Breakdown (Effective August 8):
(Yahoo Finance)
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Canada: 35%
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Mexico: 25%
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European Union: 0%* / 15%** (adjusted from earlier 20%)
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United Kingdom: 10%
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India: 25% (earlier 26%)
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Japan: 15% (reduced from 24%)
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Indonesia: 19% (cut from 32%)
(Differences reflect varying EU trade categories).
Trump’s broader criticism of India includes its high trade barriers, reliance on Russian military hardware, and record energy imports from Moscow.
“India is our friend, but their tariffs are among the highest in the world and they maintain the most strenuous trade barriers. They remain Russia’s largest buyer of energy along with China—all things not good,” Trump asserted.
India’s Response
The MEA described the criticism of India’s trade policy as “unjustified and unreasonable,” asserting that India will take necessary measures to safeguard its national interests and economic security. In a statement, the Ministry of External Affairs (MEA) clarified that India’s crude imports from Russia were prompted by disruptions in traditional supply chains after the conflict in Ukraine began.
“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,” the MEA statement read.
“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 market stability,” it added.
Despite rising U.S.-India trade tensions, New Delhi has maintained its position on Russian oil purchases, arguing it serves domestic energy needs while urging citizens to support local goods.
This latest clash highlights the complex intersection of trade, geopolitics, and energy, with Trump linking tariffs not only to market access but also to broader strategic disputes—making India’s economic diplomacy a central test in its relations with Washington.
