Trump Threatens to Raise Tariffs on Indian Goods over Russian Oil Purchases

US President Donald Trump on Monday threatened to raise tariffs on Indian goods due to India’s purchase of Russian oil. This comes few days after Trump imposed a 25% tariff on all export goods from the country, starting from August 1.

In a sharp response, to the US President’s tariff threats, New Delhi called the attacks "unjustified" and pledged to protect its economic interests.

Taking to his social media account on Truth Social, Trump said, "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 further said.

According to a spokesperson from India's foreign ministry, India will “take all necessary measures to safeguard its national interests and economic security."

"The targeting of India is unjustified and unreasonable," the spokesperson said, as quoted by Reuters.

Trump further said that from Friday he will impose new sanctions on Russia and on the countries that buy its energy exports. This action will be taken if Moscow does not take steps to end its war with Ukraine. On the other hand, Russian President Vladimir Putin has shown no public sign of altering his stance despite the deadlines given by US.

In the last two days, sources from the Indian government told Reuters that India will keep purchasing oil from Russia despite Trump's threats. Meanwhile, India was pressurised by the West to distance itself from Moscow since Russia invaded Ukraine in early 2022 but India has consistently resisted citing its longstanding ties with Russia.

India – Russia’s Biggest Crude Buyer

India has been the biggest purchaser of seaborne crude from Russia with per day imports of Russian oil standing at 1.75 million barrels, from January to June this year, according to data provided to Reuters by trade sources.

India’s oil imports from Russia began because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, the Indian spokesperson said, while calling it a "necessity compelled by global market situation."

The spokesperson also mentioned that the West's, particularly the European Union's, bilateral trade with Russia reveals that “the very nations criticizing India are themselves indulging in trade with Russia."

Despite the Indian government's resistance, the country's main refiners stopped buying Russian oil last week, as per sources. In addition to that, discounts to other suppliers narrowed after Trump threatened hefty tariffs on countries that made such purchases.

However, Indian government officials have denied any policy change on that front.

The country's largest refiner, Indian Oil bought around 7 million barrels of crude from the United States, Canada and the Middle East, four trade sources told Reuters on Monday.