🚨A sharp and sudden rift has erupted between India and the United States, as President Donald Trump issued a fiery ultimatum: Indian goods will face “very substantial” tariff hikes within 24 hours — all due to India’s continued oil trade with Russia.
Trump is livid, accusing India of “fuelling the war machine” in Ukraine and demanding an immediate halt to Russian energy imports.
“They’re fuelling the war, and if they’re going to do that, I’m not going to be happy,” Trump declared in a blunt interview with CNBC.
He also brushed off India’s offer of zero tariffs on U.S. goods as insufficient, pointing to what he called unfairly high Indian tariffs as the root of the problem.
“India went from the highest tariffs ever. They will give us zero tariffs, and they’re going to let us go in. But that’s not good enough — because of what they’re doing with oil. Not good.”
📉 Markets Shaken as Trump Ramps Up Pressure
The clash began on July 31, when Trump imposed a 25% tariff on Indian goods and warned of additional penalties unless India distanced itself from Moscow. Now, he’s promising a steep escalation unless immediate action is taken.
He also announced plans to introduce new sanctions against Russia and any country buying its energy exports — including India — starting this Friday, if the Ukraine war doesn’t see major de-escalation.
The pressure is already being felt in the markets:
The BSE Sensex dropped 0.38%
The rupee weakened by 0.17% against the dollar
🇮🇳 India Pushes Back: ‘We’re Keeping Oil Prices Stable’
India is refusing to budge. A senior Indian government official defended the oil purchases, arguing they are crucial for global price stability.
“If we stop buying Russian oil, who will replace those barrels to maintain balance and prevent prices from shooting up?”
“We don’t want another 2022, when oil shot up to $137 a barrel.”
India, the world’s third-largest oil importer and consumer, currently buys over a third of its crude oil from Russia. From January to June this year alone, India imported around 1.75 million barrels per day — up 1% from last year.
🌍 India Slams the West’s ‘Double Standards’
India’s Foreign Ministry came out swinging, accusing the West of hypocrisy and selective outrage.
“It is unjustified to single out India,” the Ministry stated.
Officials pointed out:
The EU conducted €67.5 billion ($78 billion) in trade with Russia in 2024
It imported a record 16.5 million metric tons of Russian LNG
Meanwhile, the U.S. continues to import Russian uranium, palladium, fertilizers, and chemicals
“It is revealing that the very nations criticising India are themselves indulging in trade with Russia.”
So far, the U.S. Embassy and the EU’s delegation in New Delhi have not commented.
🔥 India Stays Its Course Despite Mounting Pressure
Despite Trump’s threats, India is standing firm on its foreign policy and energy strategy.
National Security Adviser Ajit Doval is still scheduled to visit Russia this week, with Foreign Minister S. Jaishankar expected to follow soon. The visits signal that India is not backing down from its long-standing ties with Moscow.
India has consistently cited economic needs and strategic interests as reasons for its position, even as Western pressure mounts.
⏳ Countdown to Friday: Sanctions & Tariffs Loom
As the clock ticks down to Trump’s Friday deadline, the world is watching closely. With Trump doubling down on sanctions and tariff threats, the fallout could be massive — for trade, diplomacy, and global markets.
This diplomatic storm — brewing since July 31 — is now hitting full force.
One thing is clear: The U.S.-India relationship is on a knife’s edge, and Russian oil is the spark that’s igniting a major global standoff.