President Donald Trump on Monday said he will be "substantially raising" the tariffs the US charges on goods from India, in response to India's purchases of oil from Russia.
Trump did not say how much he would raise tariffs on India, which were already set to increase later this week to 25pc, up from an existing rate of 10pc, under an executive order Trump signed on 31 July. The latest tariff announcement comes ahead of an 8 August deadline Trump has given Russia to agree to a ceasefire agreement in Ukraine, under the threat of additional sanctions on Russia.
"India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits," Trump wrote today in a social media post. "They don't care how many people in Ukraine are being killed by the Russian War Machine."
The US imported more than $87bn in goods from India in 2024, while the US exported more than $41bn of goods to India, according to the US Census Bureau. India was one the first major economies to seek trade talks with the US in a bid to lower tariffs that Trump first imposed on the country in April, but no trade agreement has been reached.
India's Foreign Ministry said the US threat of increased tariffs was "unjustified and unreasonable", while adding that the US and EU were "themselves indulging in trade with Russia" for goods that include energy, fertilizer, iron, steel, chemicals and uranium.
"Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," India's Foreign Ministry said.
Trump has threatened to apply "secondary tariffs" on Russian crude exports, under which the US would impose higher tariffs on imports from countries purchasing Russian oil. China, India and, to a lesser degree, Turkey are the largest remaining buyers of Russian crude. On 3 August, Trump said that his special envoy Steve Witkoff "may be going to Russia" ahead of the ceasefire deadline.
Last week, Trump criticized India for its purchases of Russian energy. The US is separately charging a 50pc tariff on steel and aluminum imported from India.
