The US President has renewed threats to impose “very substantial” increases on tariffs against Indian goods, citing India’s continued crude oil imports from Russia. This follows a previous 25% tariff already in effect. New Delhi has publicly dismissed these warnings as “unjustified” and affirmed its commitment to safeguarding its economic interests, further escalating trade tensions between the two nations.
The US President criticised India’s trade practices, stating that India has “not been a good trading partner” due to its high tariffs on American products and its significant purchases of Russian oil. He indicated that the existing 25% tariff on Indian goods, set to be effective from August 7 (Thursday), could be “very substantially” increased within the next 24 hours. The President linked India’s energy trade with Moscow to the ongoing conflict in Ukraine, accusing India of “fuelling the war machine.”
India’s Ministry of External Affairs (MEA) has strongly pushed back against these threats. In a statement on August 4 (Monday), the MEA defended India’s energy strategy, asserting that its crude oil purchases from Russia are “a necessity compelled by global market conditions” and not a political endorsement of Moscow. The MEA highlighted what it termed “double standards,” noting that the US and European Union themselves continue to engage in trade with Russia, including in energy and critical commodities, despite publicly opposing the Ukraine conflict. The MEA stated that “the targeting of India is unjustified and unreasonable” and that “like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”
The Kremlin has also weighed in on the escalating tensions. On August 5 (Tuesday), Kremlin spokesperson Dmitry Peskov publicly accused the United States of exerting “illegal trade pressure” on India. He emphasised that “sovereign countries have the right to choose their own trading partners” and that attempts to force nations to cut trade relations with Russia are “illegitimate.”
This diplomatic standoff underscores a growing geopolitical rift as countries like India and China resist Western efforts to isolate Russia, prioritising their national interests and energy security amidst global uncertainties.
