President Donald Trump said he will raise the tariff on Indian goods “very substantially” within 24 hours, escalating the 25% levy he imposed just last week and tying the move directly to New Delhi’s continued imports of discounted Russian crude.
In a CNBC interview, Trump insisted India “has not been a good trading partner” and accused it of “fueling the [Russian] war machine.” He rejected a reported Indian offer of zero tariffs on US exports, saying it “is not good enough” while Moscow profits from oil sales.
The confrontation comes against a $45.8 billion US goods-trade deficit with India in 2024, up 6% year-over-year, according to the US Trade Representative.
Hypocrisy
India’s Foreign Ministry called the threat “unjustified,” noting that the European Union still traded €67.5 billion with Russia in 2024—including a record 16.5 million tonnes of Russian LNG—while the US continues to import Russian uranium and critical minerals.
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Moscow joined the fray, with Kremlin spokesman Dmitry Peskov labeling Washington’s pressure “illegal” and affirming that sovereign states “have the right to choose their own trading partners.”
India now buys roughly 1.75 million bpd of Russian crude—about 40% of its total oil imports—after virtually none before February 2022. Analysts at Kpler warn that a forced pivot “will be costly, complex, and politically fraught.”
Mumbai’s BSE Sensex slipped 0.4%, and the rupee weakened. Jewelery giant Titan is already considering shifting production to the Gulf, where exports would face Washington’s baseline 10% tariff instead of a potential over 30% India rate.
Trump’s wider tariff reset is scheduled to snap back on dozens of countries Thursday, reviving rates unseen in a century.
Information for this briefing was found via The New York Times, Reuters, Economic Times, CNBC, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
