WASHINGTON – The Indian government is facing a grim situation as US President Donald Trump announced imposing steep new tariffs on goods imported from India, citing New Delhi continued purchases of Russian oil and military equipment amid ongoing war in Ukraine.
In recent statement, Trump lamented India for what he described as a profit-driven reselling of Russian oil on international markets, despite widespread condemnation of Russia’s invasion of Ukraine.
“India is buying massive amounts of oil from Russia and selling much of it for big profits. They don’t seem to care about the lives being lost in Ukraine,” Trump said. “Because of this, I will be substantially raising the tariffs India pays to the United States.”
Though Trump did not specify the exact rates, he has previously proposed a 25% tariff on Indian imports, with an additional, unspecified penalty. He said the new measures will take effect August 1, which he referred to as a deadline for concluding a new U.S.-India trade agreement.
On the other hand, Indian government confirmed that India intends to maintain its oil trade with Russia despite the threat of US penalties. Indian Ministry of Commerce and Industry has not issued an official statement but said it is reviewing the implications of Trump’s remarks.
Indian government stressed commitment to safeguarding the interests of its farmers, small businesses, and national economy. It reaffirmed its goal of finalizing a trade deal that is “fair, balanced, and mutually beneficial.”
US-India trade negotiations have been ongoing for months, with both sides attempting to strike a deal before Washington’s self-imposed tariff deadline. While US officials have expressed cautious optimism, progress has reportedly stalled over key issues, particularly agriculture and dairy market access.
America was India’s largest trading partner last year, with bilateral trade reaching $190 billion but US recorded a trade deficit of $45.8 billion with India, which Trump repeatedly pledged to cut. POTUS lately called out Indian tariff regime, calling it among the highest in the world.
