President Trump said Monday that he will be “substantially raising” the tariffs on Indian exports to the U.S. over its decision to purchase Russian oil, following through on his promise last week to try and end the Ukraine war by targeting nations that are helping Moscow fund the conflict.
“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,” Mr. Trump wrote on Truth Social. “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.”
Mr. Trump did not specify how much he would raise the tariff. Last week, he announced a 25% rate on Indian exports, frustrating New Delhi after months of talks failed to negotiate a trade deal. Along with the 25% tariff, Mr. Trump threatened more levies on India if it keeps buying Russian oil.
The tariff threat on Monday comes a few days ahead of a Friday deadline Mr. Trump gave Russia for reaching a truce with Ukraine, or else suffer more sanctions and penalties. Mr. Trump has also threatened secondary sanctions on countries that purchase Russian energy. Those purchases are helping keep Russia’s economy afloat despite economic sanctions and lessening pressure on Moscow to end the more than three-year-old war.
Mr. Trump has ramped up his rhetoric against India in recent weeks, blasting the country over its high tariffs and other barriers to U.S. goods as well as its Russian oil purchases.
Indian Prime Minister Narendra Modi, who has had a friendly relationship with Mr. Trump, has remained defiant. Last week, he urged Indians to buy local goods instead of U.S. imports and signaled that his country will not stop buying Russian oil.
India’s government has not asked oil refiners in the country to stop buying Russian oil. Moscow has become the oil supplier to India since the war in Ukraine began in February 2022. Before the war, India was purchasing just under 100,000 barrels per day, but since 2023 that number has soared to 1.8 million barrels per day, or 39% of its total imports, according to the International Energy Agency.
That’s because Russian oil exports were capped at $60 per barrel in December 2022 by the Group of Seven nations, which represent the world’s top economies, creating a substantial discount for nations that still buy Moscow crude.
India is still pursuing a trade deal with the U.S. and lower tariffs, but Mr. Trump also has concerns about India’s significant trade surplus with the U.S. The U.S. had a trade deficit of about $43 billion last year, the 11th largest, according to data from the International Monetary Fund.
