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Agencies: US President Donald Trump on Tuesday accused India of being “a bad trading partner” and announced plans to “very substantially” increase tariffs on Indian imports within the next 24 hours, citing New Delhi’s continued purchase of Russian crude oil. In an interview with CNBC’s Squawk Box, Trump said, “With India, what people don’t like to say is that they’re the highest tariff nation. They have the highest tariff of anybody. We do very, very little business with India because their tariffs are so high. India has not been a good trading partner because they do a lot of business with us, but we don’t do business with them. So we settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil. They’re fueling the war machine, and if they’re going to do that, then I’m not going to be happy.”

Trade Deal Talks Hit Roadblock

Trump also said prospects for a US-India trade deal—considered close to finalisation—were now uncertain.“The sticking point with India is that its tariffs are too high. Now I will say this: India went from the highest tariffs evMEA er, they will give us zero tariffs… But that’s not good enough, because of what they’re doing with oil.” This is the second day in a row that Trump has accused India of “profiting massively” by refining discounted Russian crude oil and exporting refined products to global markets.

India’s Strong Response

Hours after Trump’s remarks, the Ministry of External Affairs (MEA) issued an unusually sharp statement, rejecting the US and European criticism of India’s energy trade with Russia.“The targeting of India for its procurement of Russian crude oil is unjustified and unreasonable. The US and EU continue their own significant trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” the MEA said.

India has consistently defended its Russian oil imports, citing energy security and affordability as critical imperatives. Officials argue that discounted Russian crude has helped India manage inflationary pressures and secure fuel for its 1.4 billion people amid global volatility.

Facts-File 

India–Russia Energy Ties: Since the Ukraine war, India has emerged as one of the largest buyers of Russian crude, which it often refines and re-exports, including to markets like Europe.

US–India Trade Frictions: Tariff disputes between India and the US date back to Trump’s first term, when the US ended India’s preferential trade status under the Generalised System of Preferences (GSP).

Strategic Partnership vs. Trade Discord: While bilateral defence and technology ties have deepened in recent years, trade has often been contentious, with disputes over agricultural imports, digital taxes, and market access for US medical devices and dairy products.

Implications

1. Bilateral Trade Tensions Could Escalate – A steep tariff hike risks triggering retaliatory measures from India, similar to 2019 when India imposed tariffs on US almonds and apples.

2. Geopolitical Angle – Trump’s remarks highlight how Russian oil imports have become a new fault line in India’s Western partnerships, despite broad convergence on Indo-Pacific strategy.

3. Business & Market Impact – Key Indian export sectors—textiles, pharmaceuticals, steel, and engineering goods—could be impacted if tariffs rise substantially.

4. Political Signalling – Trump’s statements come as US election rhetoric heats up, suggesting India could become a talking point in Washington’s domestic politics.