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Trump threatens higher tariffs on India over 'Russian oil profit'

  • By Al Mayadeen English
  • Source: News Websites
  • 4 Aug 2025 20:36
2 Min Read

US President Donald Trump says India is profiting from reselling Russian oil and announces increased tariffs on Indian exports, criticizing New Delhi's trade practices and ties with Moscow.

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  • President Donald Trump speaks with reporters before boarding Air Force One at Lehigh Valley International Airport, Sunday, Aug. 3, 2025, in Allentown, Pa. (AP)
    President Donald Trump speaks with reporters before boarding Air Force One at Lehigh Valley International Airport, Sunday, Aug. 3, 2025, in Allentown, Pa. (AP)

US President Donald Trump announced plans to increase tariffs on Indian exports, accusing New Delhi of profiting from the resale of sanctioned Russian oil on the open market.

“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 … Because of this, I will be substantially raising the Tariff paid by India to the USA. Thank you for your attention to this matter!!!” Trump wrote on Truth Social.

The US president has taken a hardline stance on what he described as unfair trade practices by India. He stated that India’s continued purchase of Russian energy products undermines US sanctions on Russia and provides financial benefits to New Delhi at the expense of global efforts to isolate Moscow.

Tariff hike announced on Indian exports

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Last week, Trump said India would face a 25% tariff on its exports to the United States starting August 1. He added that New Delhi would also face penalties for purchasing Russian military and energy equipment. Despite referring to Indian Prime Minister Narendra Modi as a friend, Trump expressed dissatisfaction with India’s level of trade engagement with the US.

Meanwhile, Indian officials told Reuters on Saturday that the government intends to maintain its oil imports from Russia, despite mounting threats from Washington.

Although Indian officials have not issued a formal response to the new tariffs, sources suggest that the government is preparing contingency plans, including exploring new export markets and trade partnerships.

Despite recent pressures, India's broader trade strategy remains focused on balancing domestic industrial development with international engagement. 

Read more: India scraps F-35 deal with US as Trump slaps tariffs

  • US tariffs
  • United States
  • Russian oil
  • Russia
  • India
  • Trade with Russia
  • India-Russia trade
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