Former U.S. President Donald Trump has threatened to impose tariffs as high as 50% on imports from India, citing the country's continued economic ties with Russia and its participation in the BRICS economic bloc. Trump asserts that India is exploiting the situation in Ukraine by purchasing large quantities of Russian oil and then reselling it on the open market for substantial profits. He argues that this practice undermines efforts to isolate Russia economically and sustain its war efforts.

Trump conveyed his intentions via social media, stating he would be "substantially raising the Tariff paid by India to the USA". He had previously announced a 25% tariff on Indian exports. Trump views India's relationship with Russia, particularly its energy purchases, as a direct challenge to U.S. interests and a sign that India "doesn't care how many people in Ukraine are being killed by the Russian War Machine".

The Indian government has responded strongly to these threats, deeming them "unjustified and unreasonable". The Ministry of External Affairs (MEA) issued a statement emphasizing that India, like any major economy, will take necessary measures to safeguard its national interests and economic security. The MEA also pointed out that India's oil imports from Russia are driven by the need to ensure predictable and affordable energy costs for its consumers. They also noted that European countries continue to trade with Russia at higher volumes.

The U.S. president's warning comes ahead of an Aug. 8 deadline for Russia to reach a truce with Ukraine, with the administration threatening so-called secondary sanctions on countries that purchase Russian energy.

The potential imposition of tariffs has sparked debate within both countries. Some U.S. analysts have cautioned against alienating India, especially as the U.S. seeks to counter China's growing influence. Meanwhile, the Indian Congress party has criticized the government for its perceived silence and inaction in the face of Trump's threats.

Trump has also criticized India's participation in BRICS, a bloc of developing economies comprising Brazil, Russia, India, China, and South Africa. He views BRICS as an attempt to undermine the dominance of the U.S. dollar and challenge American economic hegemony. He has stated that any country that is part of BRICS will be tariffed. He has also said that BRICS is fading fast.

The situation highlights the complex interplay between economic policy, geopolitical strategy, and international relations. For India, balancing its economic interests with its strategic objectives remains a key challenge. The country is committed to a fair and mutually beneficial trade relationship that prioritizes the welfare of its farmers, entrepreneurs, MSMEs, and its national interests.