Washington/New York, August 5:
US President Donald Trump has warned of imposing higher tariffs on India within the next 24 hours, citing India’s continued import of Russian oil and alleged reselling of refined products abroad. Speaking to CNBC, Trump said that while India is set to offer “zero tariffs,” it is not enough due to its oil trade with Russia.
Last week, Trump announced a 25% tariff on Indian goods. “They’re fueling the war machine. And if they’re going to do that, then I’m not going to be happy,” he said, targeting India despite other countries like China, Turkey, and the EU also buying Russian oil.
India’s External Affairs Ministry hit back, calling the move “unjustified and unreasonable.” It pointed to the US’s own continued imports of Russian uranium, palladium, fertilizers, and chemicals. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” the ministry said.
India is currently the largest importer of Russian oil, accounting for 70% of Russia’s oil exports, making it a key pressure point for Trump amid ongoing tensions with Russian President Vladimir Putin.
Trump also hinted at a special tariff on pharmaceuticals—India’s top export to the US—warning it could rise to 200% over the next two years. US imports of Indian pharmaceuticals totaled $8.7 billion last year.
When asked about a potential trade deal with India, Trump said the sticking point was high Indian tariffs. He claimed India has “not been a good trading partner” due to an uneven trade balance—$128.9 billion in total trade last year with a $45.8 billion US deficit.
Meanwhile, the Kremlin called Trump’s pressure “illegitimate,” stating countries have the right to choose their trade partners.
