WASHINGTON, Aug 4 – Tensions between the United States and India flared once again on Monday after President Donald Trump issued another stern warning about imposing steep tariffs on Indian goods. This time, the trigger was India’s continued purchase of Russian oil, which Trump described as a “direct affront” to international efforts against Moscow’s aggression in Ukraine.
Taking to social media, Trump claimed that India is not only importing large quantities of oil from Russia but also re-exporting some of it for profit. “India is buying up Russian oil in huge volumes and then selling a chunk of it on the open market to make money. Meanwhile, innocent people in Ukraine are dying every day because of Russia’s brutal war machine,” he wrote.
He then issued a direct threat: “Because of this, I will be substantially increasing the tariffs India pays to the United States.” The statement has sparked concern in both New Delhi and global markets, raising questions about the future of U.S-India trade ties, which have already been rocky under Trump leadership.
A spokesperson from India’s Ministry of foreign Affairs quickly responded, calling Trump’s remarks “unjustified and unreasonable.” The spokesperson added, “India will take every step necessary to protect its national interest and ensure the security of its economy.”
Trade Tensions and Oil Politics
India has long insisted that its relationship with Russia is based on strategic necessity, not political alignment. Since the conflict in Ukraine began over three years ago, India has continued to import oil from Russia, citing affordability and energy security. With global prices unpredictable, Russian oil offers New Delhi a financially viable option in a volatile market.
According to data provided to Reuters by trade sources, India has been importing around 1.75 million barrels per day from Russia so far this year, a slight uptick compared to the previous year. However, Indian officials argue that this is not a political move, but rather a response to supply chain disruptions caused by the conflict and the shifting behavior of Western suppliers.
Indian representatives have also pointed out the hypocrisy in the criticism. “It is worth noting that many of the countries pressuring India have continued bilateral trade with Russia themselves,” said a senior government official. “India is not doing anything different. We are acting out of economic need.”
Despite India’s firm position, some of the country’s largest refiners reportedly paused new Russian oil purchases last week, citing market uncertainties and shrinking discounts from Russian sellers. Officials, however, denied any change in policy and attributed the pause to routine commercial adjustments. Meanwhile, companies like Indian Oil Corp have secured millions of barrels of crude from alternative sources including the United States, the Middle East, and Canada.
Geopolitical Frustration Mounts
Tensions between the U.S. and India go beyond just the oil trade. Trump has repeatedly voiced frustration over India’s involvement in the BRICS alliance — a bloc made up of Brazil, Russia, India, China, and South Africa — calling it “anti-American” and “a platform for U.S. rivals.”
Indian leaders have pushed back against that notion, stating that BRICS exists to promote the interests of developing nations and should not be viewed through a Cold War-style lens. “Our participation in multilateral platforms reflects our desire to engage globally and protect our developmental needs,” a senior Indian diplomat said.
Trade talks between the two countries remain stalled, with no breakthrough on key issues ranging from digital taxes to agricultural subsidies. Last month, Trump had already slapped a 25% tariff on a wide range of Indian imports, further complicating negotiations.
Adding to the diplomatic strain, India has grown increasingly irritated by Trump’s public remarks on South Asian geopolitics. In particular, his claims earlier this year that he brokered a ceasefire between India and Pakistan drew sharp criticism. Indian officials viewed the statement as both misleading and politically opportunistic.
“Trump’s unpredictability makes it hard for Delhi to read Washington,” said Richard Rossow, who leads a prominent think tank program focused on India. “Especially when it comes to energy and defense, India is left trying to guess how his administration would swing month to month.”
As the situation develops, it remains to be seen how New Delhi will balance its long-term strategic goals with mounting pressure from the West. For now, Indian authorities appear committed to staying the course, determined not to let external threats reshape their energy policy.