US PRESIDENT Donald Trump on Monday again threatened to increase tariffs on Indian goods over the country’s Russian oil imports. India responded by calling the move “unjustified” and said it would protect its economic interests, intensifying the trade dispute between the two nations.
In a social media post, Trump wrote, “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. They don't care how many people in Ukraine are being killed by the Russian War Machine.”
“Because of this, I will be substantially raising the Tariff paid by India to the USA,” he added.
India says targeting is unjustified
A spokesperson for India’s foreign ministry said that India will “take all necessary measures to safeguard its national interests and economic security.”
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“The targeting of India is unjustified and unreasonable,” the spokesperson added.
Trump has also said he will impose new sanctions on Russia and countries that buy its energy exports starting Friday, unless Moscow takes steps to end its 3-1/2 year war in Ukraine. Russian President Vladimir Putin has shown no sign of changing course despite the deadline.
India to continue oil purchases
Two Indian government sources told Reuters over the weekend that India will continue purchasing oil from Russia despite Trump’s warnings.
India has been under Western pressure to scale back ties with Moscow since Russia invaded Ukraine in early 2022. New Delhi has resisted, citing its longstanding relationship with Russia and economic needs.
Trump had already announced 25 per cent tariffs on Indian imports in July. US officials have said geopolitical differences are hindering a trade agreement with India.
Trump has also criticised the BRICS group of nations, calling it hostile to the United States. The group has denied the claim, saying it promotes the interests of its members and other developing nations.
India’s Russian oil imports rise
India is the largest buyer of Russian seaborne crude, importing about 1.75 million barrels per day from January to June this year, a 1 per cent increase from last year, trade sources told Reuters.
The Indian spokesperson said the imports were “a necessity compelled by global market situation” after traditional supplies shifted to Europe when the Ukraine conflict began.
The spokesperson also pointed to the West’s own trade with Russia, saying, “It is revealing that the very nations criticising India are themselves indulging in trade with Russia.”
Refiners pause Russian oil buying
Despite the government’s stance, India’s main refiners paused purchases of Russian oil last week, Reuters reported. Discounts from other suppliers narrowed after Trump threatened to impose high tariffs on countries continuing such imports.
Indian officials denied any policy change. Indian Oil Corp, the country’s largest refiner, purchased 7 million barrels of crude from the United States, Canada and the Middle East, four trade sources said on Monday.
Strains in US-India ties
India has also been frustrated by Trump repeatedly taking credit for an India-Pakistan ceasefire he announced on social media in May, which ended days of hostilities between the nuclear-armed neighbours.
Richard Rossow, head of the India programme at Washington’s Center for Strategic and International Studies, said the unpredictability of the Trump administration adds to India’s challenge.
“India's continued energy and defence purchases from Russia presents a larger challenge, where India does not feel it can predict how the Trump administration will approach Russia from month to month,” he said.
(With inputs from agencies)
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