Donald Trump's stance on tariffs with India has taken a new turn, sparking concerns in New Delhi and raising questions about the future of trade relations. Recent reports indicate that Trump has expressed frustration over India's trade practices, particularly its purchases of Russian oil, leading him to consider imposing tariffs.

Trump has reportedly asked the European Union to impose tariffs of up to 100% on India and China in an effort to pressure Russia to end its war in Ukraine. He made the demand during a meeting between US and EU officials discussing options to increase economic pressure on Russia on Tuesday. A US official stated that the Trump administration was ready to implement these tariffs if European partners joined in.

This move follows increased tariffs on Indian imports to 50% last month in response to India's continued purchase of Russian oil. Despite this, Trump mentioned ongoing trade negotiations with India and expressed optimism about reaching a successful conclusion for both countries.

However, the EU is unlikely to accept Trump's proposal. According to media reports, the EU has rejected Trump's call for a 100% tariff on Indian goods, signalling positive implications for India's stock market. Experts believe this diplomatic win could enhance market sentiment.

The U.S. Treasury has also called on G7 and EU allies to impose "meaningful tariffs" on goods from China and India to halt their purchases of Russian oil. They convened an emergency G7 finance meeting to discuss efforts to step up pressure on Moscow to end its war in Ukraine. A U.S. Treasury spokesperson said that Chinese and Indian purchases of Russian oil are funding Putin's war machine and prolonging the senseless killing of the Ukrainian people.

Trump expressed frustration with Putin's failure to halt the war despite his peacemaking efforts. He suggested sanctions on banks and oil, along with tariffs, to increase pressure on Russia, but emphasized the need for European participation.

These developments occur as Trump's tariff policies face legal challenges. A US trade court ruled that the tariffs exceed presidential authority, and a federal appeals court upheld the ruling. The case is now heading to the supreme court.

Amidst these tensions, India navigates a complex balancing act between its long-standing ties with Russia and its growing strategic partnership with the United States.