Trump Vows to ‘Substantially’ Raise Tariff on India Over Russian Oil Imports
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Oil tanks of the Transneft oil pipeline operator at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia, on Aug. 12, 2022. (Tatiana Meel/Reuters)
By Bill Pan
8/4/2025Updated: 8/4/2025

U.S. President Donald Trump announced on Aug. 4 that he would “substantially” raise tariffs on goods from India, citing the country’s continued purchase of Russian oil despite his demand that it stop.

The president’s comments come as he seeks to broker a deal that would end Russia’s war in Ukraine by Aug. 8.

“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 on his Truth Social platform. “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.”

India has defended the decision to continue its energy trade with Russia, citing the need to ensure “predictable and affordable energy costs to the Indian consumer.” It also noted that the United States has continued to buy Russian fertilizers and other chemicals needed for the nuclear and electric vehicle industries.

“In this background, the targeting of India is unjustified and unreasonable,” Indian Foreign Ministry spokesperson Randhir Jaiswal said in an Aug. 4 statement. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”

This past week, Trump announced a 25 percent tariff on Indian goods on top of an unspecified penalty for buying Russian oil and weapons.

Oil exports have become a vital source of revenue for Russia, as it seeks to sustain its war effort in Ukraine amid sweeping Western sanctions that are putting its economy under considerable strain. Taking advantage of the sanctions, India has surpassed China to become the largest buyer of Russian crude, accounting for more than one-third of Russia’s crude oil exports in 2024.

In 2023, Russian oil made up nearly 40 percent of India’s oil imports, a dramatic increase from just 3 percent in 2021, before the long-running conflict between Russia and Ukraine escalated into a full-scale war.

U.S. Secretary of State Marco Rubio has called India’s relationship with Russia a “point of irritation” in India–U.S. relations. In a Fox News Radio interview this past week, he acknowledged India’s energy needs and Russia’s discounted oil prices but stressed that these purchases were keeping Russia’s war machine running.

“I think what you’re seeing [Trump] express is the very clear frustration that with so many other oil vendors available, India continues to buy so much from Russia,” Rubio said.

New Delhi has not instructed its oil refiners to stop importing Russian crude. On Aug. 1, Jaiswal refuted reports suggesting a pause in Russian imports.

“We take decisions based on the price at which oil is available in the international market and depending on the global situation at that time,” he told reporters.

Indian Prime Minister Narendra Modi urged his citizens to buy local goods in response to U.S. tariffs.

“Today, the world economy is going through many apprehensions; there is an atmosphere of instability,” Modi said at a rally on Aug. 2.

“Now, whatever we buy, there should be only one scale: We will buy those things which have been made by the sweat of an Indian.”

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