Trump Threatens Higher US Tariffs on India Over Russian Oil in 2025

US and India Trade Tensions Grow

The news is about former U.S. President Donald Trump and India. On August 4, 2025, Trump said he will raise tariffs on Indian goods. He blamed India for buying oil from Russia. He said India is making big profits from it by selling on the world market. He also said India does not care about the people dying in Ukraine. Because of this, he promised much higher tariffs than before .

Earlier, Trump had already put 25 percent tariff on many Indian exports. This was announced in late July. Now he says he will increase that “substantially” if India continues buying Russian oil . He made these comments on his social media platform, Truth Social .

Why Is India Buying Russian Oil?

India says it started buying oil from Russia when many other sources dried up. After the Ukraine war began, traditional oil suppliers sent their shipments to Europe. This forced India to find oil elsewhere .

Indian officials said buying Russian oil is needed for energy security. They said they must keep prices low for Indian consumers. They defended the practice as necessary. They also noted that the U.S. and EU still buy many goods from Russia, even though they criticize India for doing so .

India said labels like “unjustified” and “unreasonable” best describe Trump’s threats. They promised to protect their national interests .

What Are the Stakes for India?

India gets about one‑third of its oil from Russia. That share had dropped a little in July, but it is still large. India reduced Russian crude imports from about 44 percent in June to 33.8 percent in July of its total oil purchases .

Some Indian refiners paused buying new Russian oil. But the government says there is no formal policy change yet . The decision now lies in balancing trade ties with the U.S. and energy needs within India.

The U.S. Message and Wider Concerns

Trump accused India of helping Russia’s war effort. He argued that India profits while ignoring casualties in Ukraine.

He also brought up secondary sanctions. That means any country buying Russian oil or other goods could face harsh trade penalties. China is also mentioned in this context. But Trump focused especially on India .

Financial markets reacted. Some Wall Street analysts warned of a potential market drop. They said trade tensions like this could slow global growth. They flagged risks of higher inflation and job losses .

India’s Response: Keep Calm and Carry On

India’s Ministry of External Affairs issued a formal reply. They said India bought Russian oil because traditional routes dried up. They noted the U.S. and EU also trade with Russia. They said targeting India was unfair .

Officials reaffirmed India’s right to protect its economy. They promised to take all measures needed for national interests and security .

Strain on US–India Relations

Once, Trump and India’s Prime Minister Narendra Modi had a friendly public bond. Now the relationship is tense. Trust between the two countries is under pressure .

Trump seems to be favoring Pakistan lately. He offered to mediate in Kashmir and announced an oil deal. These moves frustrated India, raising more diplomatic friction .

Trade talks between India and the U.S. have stalled. They have not agreed on market access, especially for American farm goods. These disagreements linger alongside the bigger tariff issues.

What Could Happen Next?

If India continues importing Russian oil, Trump may impose even higher tariffs. Current U.S. laws allow “reciprocal tariffs” and secondary sanctions. Some senators want up to 500 percent tariffs on countries that buy Russian oil or gas.

That would be a very heavy penalty. It could affect many Indian export sectors. Apparel, footwear, pharmaceuticals, auto parts—many industries could face steep costs.

If India stops buying Russian oil, tensions may ease. But India must still meet domestic energy demand. Indian refiners already cut Russian oil in July. This may be India’s way to signal caution.

Final Thoughts

The U.S. threatens higher tariffs on India over oil from Russia. Trump says India profits from conflict in Ukraine and ignores human costs. He posts this on August 4, 2025, as a public warning.

India says its purchases are a matter of necessity. It defends its rights and calls U.S. targeting unfair and unreasonable. The Indian government pledges to protect national interests .

Diplomatic ties are strained. Trade talks remain unresolved. If tensions rise further, Indian exports may become more expensive. India faces a hard choice: energy needs or trade peace.

We will watch how India and the U.S. move next. The outcome matters for both countries, and for the global economy.