Donald Trump has once again threatened to significantly increase tariffs on India, this time citing the country's continued purchase of Russian oil as "fuelling Russia's war machine" in Ukraine. The former US President announced he would be "substantially raising the Tariff paid by India to the USA". Trump's statement was made via a post on Truth Social.
This announcement comes shortly after Trump declared a 25% tariff on imports from India, criticizing the country's trade barriers and its acquisition of military equipment from Russia. He has also expressed his disapproval of India and China being the largest buyers of Russian energy while calling for Russia to end the conflict in Ukraine.
Trump's recent statements have been met with criticism and unease in India. India's Ministry of External Affairs has called Trump's threats "unjustified and unreasonable", stating that many nations criticizing India are also engaging in trade with Russia. They also emphasized that India's imports from Russia are to ensure affordable energy costs for Indian consumers. Randhir Jaiswal, spokesperson for India's foreign ministry, has maintained that India will continue to pursue its foreign policy of "non-alignment," preserving its long-standing partnership with Russia while also strengthening ties with the United States. He stated, "Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country".
The US imported $87.4 billion in Indian goods in 2024. Trump's proposed tariff hikes add further strain to the US-India relationship, which has seen increasing friction. Experts are concerned that these actions could undermine the strategic bilateral relationship that has been carefully built over decades.
Some analysts suggest that Trump's actions are a negotiating tactic to push India for more concessions in a trade deal, as the US aims to reduce its trade deficit with India. However, others view these actions as "blunt coercion" and "gross interference in Indian foreign policy". It is also viewed as a cynical effort to blame India for the West's failure to stop the war in Ukraine.
The situation remains tense as the August 8th deadline approaches for Russia to agree to a ceasefire in its war on Ukraine. Trump has threatened to impose "secondary tariffs" of up to 100 percent on countries that continue to trade with Russia if President Vladimir Putin does not cease hostilities.