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Donald Trump Hits India with Extra 25% Tariff for Buying Russian Oil
Washington/New Delhi – August 6, 2025 — Former U.S. President Donald Trump, who is running for re-election with a hardline “America First” agenda, has announced a sweeping new tariff policy targeting India. In a fiery campaign speech in Ohio on Tuesday, Trump declared a 25% tariff on all Indian goods imported into the U.S., accusing New Delhi of undermining global sanctions by continuing to purchase discounted Russian oil.
The move sent shockwaves through international markets and raised concerns over a fresh trade war between two of the world’s largest democracies.
Trump’s Accusation: “They’re Funding Putin’s War Machine”
Trump sharply criticised India’s energy strategy, claiming that Prime Minister Narendra Modi’s government is “propping up Putin’s war machine” by continuing oil imports from Russia despite the ongoing war in Ukraine.
“While Americans are paying higher prices to defend freedom, India is buying cheap oil from our enemies,” Trump said. “If they want to do business with Russia, they can forget doing easy business with the United States.”
India has remained officially neutral in the Russia-Ukraine conflict and has defended its decision to buy discounted crude from Moscow as a matter of national interest. Indian officials say the purchases are legal under international law and essential to maintaining stable domestic energy prices.
Economic Blow to Bilateral Trade
The United States is India’s largest trading partner, with bilateral trade valued at over $190 billion in 2024. The new tariff could deal a serious blow to Indian exports, especially in sectors like textiles, pharmaceuticals, automotive parts, and IT services.
Indian Foreign Ministry officials reacted with caution, saying they were seeking clarification on the announcement and would respond “after due analysis.”
“India’s trade and energy policies are guided by national interest and global market dynamics, not political pressure,” a senior Indian official told local media.
Analysts Warn of Escalating Tensions
Experts warn that Trump’s unilateral tariff move could trigger retaliatory action from India and damage years of progress made in U.S.-India relations.
“Trump’s tariff threat is a significant escalation that could alienate a key U.S. ally in the Indo-Pacific,” said Dr. Tanvi Malhotra, a geopolitical analyst based in New Delhi. “It undermines cooperative efforts on China, trade, and technology.”
Others argue the measure is more about domestic politics than foreign policy.
“Trump is playing to his base — painting India as an opportunist while appealing to American manufacturers and voters concerned about jobs and fuel prices,” said U.S. policy commentator Bill Raymond.
Modi Government Faces Tough Choices
For Prime Minister Modi, the timing is delicate. With rising domestic energy demands and elections on the horizon, reducing oil imports from Russia could lead to price hikes at home. But a sustained tariff war with the U.S. could threaten India’s broader economic ambitions and global partnerships.
India’s government has yet to confirm whether it will change its oil procurement strategy in response to the U.S. pressure.
Global Reactions
Russia, unsurprisingly, welcomed India’s continued purchases and condemned what it called “American economic coercion.” Meanwhile, China remained quiet but is likely watching the development closely, seeing potential strategic advantage if U.S.-India ties sour.
What Comes Next
Whether Trump’s move will become official policy — especially if he does not win re-election — remains uncertain. However, the announcement has already strained relations and raised fears of a new era of trade nationalism.
As the 2025 U.S. presidential campaign heats up, India may find itself caught in the middle of a geopolitical storm — with consequences far beyond oil.
Attached is a News article regarding Donald Trump hits India with a extra 25% tariff for buying Russian oil
https://www.bbc.co.uk/news/articles/c15lqe7v302o.amp
Article written and configured by Christopher Stanley
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