
President Trump has escalated trade tensions with India by increasing tariffs on Indian imports to a steep 50 per cent. This move follows Delhi’s continued purchase of Russian oil, a policy that has drawn Washington’s ire amid its efforts to pressure President Putin into a ceasefire in Ukraine.
The White House initially imposed a 25 per cent tariff on all Indian goods entering the United States, warning of a further penalty if India maintained its energy partnership with Moscow. When India signed a new trade agreement with Russia and refused to cut ties, Trump made good on his threat, introducing a second 25 per cent tariff, effective from 27 August. This brings Indian imports to the same punitive level as those of Brazil, another state considered a strategic partner of Moscow.
A spokesperson for India’s Ministry of External Affairs labelled the US actions as unfair, unjustified and unreasonable, citing the nations’ deep historical, defence and energy relationship with Russia. Prime Minister Narendra Modi’s ties with President Putin have strengthened in recent years, bolstered by major defence contracts and growing volumes of Russian oil exports to India.
Before the 2022 invasion of Ukraine, Russian oil made up a mere 0.2 per cent of India’s imports. One year into the conflict, this figure soared to over 40 per cent, positioning India as the largest buyer of Russian seaborne crude. President Trump has accused India of profiteering from the Ukraine crisis and disregarding the toll of the war.
Diplomatic efforts are ongoing, with the US special envoy, Steve Witkoff, recently meeting President Putin in Moscow. While both sides described the talks as productive, Trump has made clear that any easing of tariffs depends on India revising its Russian energy ties. The situation underscores the complex interplay between global trade, geopolitics, and efforts to end the war in Ukraine.
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