Trump’s Tariff Threat Against India

In a recent televised interview with CNBC, U.S. President Donald Trump announced his intention to significantly increase tariffs on Indian imports within the next 24 hours. This decision stems from India’s ongoing purchases of Russian oil, which Trump argues undermines the trade relationship between the two nations. He criticized India for being an unfavorable trading partner, highlighting that while India conducts substantial business with the U.S., the reverse is not as beneficial.

India’s Response to U.S. Criticism

India has responded to these accusations by criticizing both the United States and the European Union for targeting Indian refiners over their crude exports. The Indian foreign ministry defended its actions, stating that its imports are driven by global market necessities. They pointed out that countries criticizing India are themselves engaged in trade with Russia, even when such trade is not essential.

European Trade with Russia

The Indian foreign ministry further highlighted that European countries continue to trade with Russia across various sectors, including energy, fertilizers, mining products, chemicals, iron and steel, and machinery and transport equipment. An official statement noted that the EU conducted 67.5 billion euros ($78.02 billion) in trade with Russia in 2024, including record imports of liquefied natural gas (LNG) amounting to 16.5 million metric tons.

Impact on India-U.S. Relations

The escalating tensions between India and the U.S. have been growing since July 31, when Trump initially announced a 25% tariff on goods shipped to the U.S., coupled with threats of unspecified penalties for India’s purchase of Russian oil. These developments have raised concerns about potential repercussions on India’s economy.

Diplomatic Efforts and Future Implications

In light of these tensions, National Security Adviser Ajit Doval is expected to visit Russia this week as part of a scheduled trip, while Foreign Minister S Jaishankar is also anticipated to visit in the coming weeks. These diplomatic efforts aim to address the growing rift and safeguard India’s national interests and economic security.