Trump says he will raise tariffs on Indian exports over Modi’s oil trade with Russia

President Donald Trump on Monday said he will “substantially” punish India in response to Prime Minister Narendra Modi’s continued oil trade with Russia and refusal to cut ties with President Vladimir Putin.

The message, posted on Truth Social, accused India of buying “massive amounts” of Russian crude and reselling much of it for a profit on the global market.

“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”

The post follows a 25% tariff Trump already announced last week on Indian exports, after trade negotiations between Washington and New Delhi broke down. The new tariffs landed without warning and stunned Indian officials, who had spent months trying to secure a deal.

Trump’s latest threat arrives days before an August 8 deadline his administration has set for Russia to agree to a ceasefire with Ukraine. If no truce is reached, the U.S. has warned of additional penalties, including secondary sanctions on countries still buying Russian energy. India is one of them.

India ignores pressure, says oil trade will continue

Modi and his cabinet aren’t backing away from the energy deals. Government officials have not instructed Indian refiners, state-run or private, to stop purchasing from Russia. No decision has been made to scale back, even after Trump’s latest warning. The buying decisions are being left to the refiners, who still prefer Russia’s discounted barrels.

India started buying large amounts of Russian crude after the Ukraine war broke out in 2022. So far this year, the country has been importing around 1.7 million barrels a day, according to tanker-tracking data from Bloomberg.

At the same time, India exported 1.4 million barrels of refined fuel daily in the first six months of the year. Diesel and gasoil made up about 40% of those exports, while gasoline and blendstock accounted for roughly 30%.

Over the weekend, Modi addressed the trade war in a public rally in Uttar Pradesh. “The world economy is going through many apprehensions, there is an atmosphere of instability,” he said. The rally came just days after Trump’s 25% tariff announcement.

India’s Ministry of External Affairs responded to Trump’s post the same day. “The targeting of India is unjustified and unreasonable,” the ministry said on X. It also pointed to the U.S. and European Union still conducting trade with Russia even when it’s not a matter of “vital national compulsion.”

They added that India’s energy purchases were made to keep domestic prices stable and ensure affordability for Indian consumers, calling it a “necessity compelled by global market situation.”

Washington raises stakes as Modi defends Russia ties

India has refused to shift its position on Russia. Foreign Ministry spokesperson Randhir Jaiswal told reporters Friday that the country’s foreign relationships stand on “their own merit” and shouldn’t be “seen from the prism of a third country.”

He also defended the decades-old ties with Moscow, describing it as a “steady and time-tested partnership.” Asked if the friction with Washington would derail bilateral ties, Jaiswal said, “I’m confident that the relationship will continue to move forward.”

The White House, on the other hand, continues to tighten the screws. Trump told reporters Sunday that special envoy Steve Witkoff would travel to Russia later this week for more discussions. That visit is expected to happen on Wednesday or Thursday.

Meanwhile, tensions with Moscow keep building. Last week, Trump said he had moved two U.S. nuclear submarines in response to comments made by former Russian President Dmitry Medvedev, who had issued what Trump called “highly provocative statements.”

Back in India, the focus is shifting inward. Modi has pushed a renewed message of self-reliance and domestic consumption, tying it to his long-running “Make in India” campaign. He told the Uttar Pradesh crowd that protecting India’s farmers, small businesses, and youth employment is non-negotiable.

His government is also refusing to open the country’s dairy and agricultural markets to U.S. companies, citing both religious and political sensitivities.

Putin, for his part, isn’t moving either. The Kremlin has dismissed Trump’s pressure campaign, saying Russia’s military objectives in Ukraine remain the same. That only drives Trump crazier.

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