President Donald Trump threatened Monday to "substantially" increase U.S. tariffs on Indian goods, accusing New Delhi of profiting from discounted Russian oil while ignoring Ukraine war casualties. In a Truth Social post, Trump claimed India buys "massive amounts" of Russian crude only to resell it "on the Open Market for big profits," showing no concern for those killed by Russia's "War Machine". This follows last week’s 25% tariff announcement and an unspecified penalty targeting India’s energy and defense ties with Moscow.
India’s Foreign Ministry swiftly condemned the U.S. stance as "unjustified and unreasonable," noting Washington actively encouraged Indian imports of Russian oil in 2022 to stabilize global markets after European nations diverted traditional supplies. Spokesperson Randhir Jaiswal emphasized that India’s purchases ensure "predictable and affordable energy costs" for its 1.4 billion people, 90% reliant on imported oil. He highlighted Western hypocrisy, citing the EU’s €84 billion in 2024 Russia trade and ongoing U.S. imports of Russian uranium, palladium, and fertilizers.
Prime Minister Narendra Modi struck a nationalist tone days before Trump’s threat, urging citizens to prioritize "Swadeshi" (domestically made) goods amid global economic "instability." At a rally in Varanasi, he declared, "Whatever we buy... should be made by the sweat of an Indian". Government sources confirmed India will continue Russian oil imports, now 35% of its supply, calling them "vital for national interests". Officials downplayed tariff impacts, estimating only 0.2% GDP loss.
The rift marks a stunning reversal from February’s "bonhomie" between Trump and Modi. Analysts attribute Trump’s shift to frustration over stalled Ukraine peace talks and India’s BRICS membership, which he calls "anti-American". White House adviser Stephen Miller escalated rhetoric Sunday, accusing India of "cheating" U.S. immigration and imposing "massive tariffs" while matching China’s Russian oil purchases. Meanwhile, Moscow anticipates talks with U.S. envoy Steve Witkoff this week amid Trump’s August 8 ceasefire ultimatum to Russia.
The confrontation jeopardizes years of strategic cooperation aimed at countering China. Former Foreign Secretary Shyam Saran lamented Trump’s "nightmare" policies, urging India to endure "pain" rather than yield to U.S. demands.