US President Donald Trump on Tuesday once again warned India for buying Russian oil and said he would "substantially" increase the tariffs on New Delhi, as it is "not concerned" about the lives that are being lost in Ukraine. He, however, said that his administration will wait for what happens over the next fairly short period of time, noting that he has never stated a percentage of tariffs.
"They’re fueling the war machine… We do little business with India. They do a lot of business with us," Trump said, speaking to CNBC. "They have the highest tariff of anybody. We settled on 25 per cent, but I think I’m going to raise that very substantially over the next 24 hours because they’re buying Russian oil."
Trump, however, later clarified that he has never said a percentage about tariffs. "I never said a percentage, but we’ll be doing quite a bit of that. We’ll see what happens over the next fairly short period of time," he said.
What has India said about Trump's tariffs?
India has strongly hit back at the US and the European Union (EU) for criticising India's purchase of Russian oil. In a statement, the Ministry of External Affairs (MEA) said that it was the West which had "encouraged" others to buy Russian oil to "stabilise global energy markets".
"In this background, the targeting of India is unjustified and unreasonable... Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the MEA said.
Trump criticises India, but stays mum on China
Even though Trump has constantly criticised India and imposed tariffs, he has stayed relatively silent on China, which is the largest buyer of Russian oil since the beginning of the Ukraine war in 2022. According to data presented by the Global Trade Research Initiative (GTRI), China imported USD 62.6 billion worth of Russian oil in 2024, while India purchased USD 52.7 billion.
Trump has also faced criticism from his party for selective outrage, with Nikki Haley warning him that the US "should not burn" its relationship with India. "...China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don’t give China a pass and burn a relationship with a strong ally like India," said Haley in an 'X' post.
Trump hints at striking deal with China?
While Trump continues to criticises India, he has also hinted at striking a deal with China. On Tuesday, he lauded the "good relationship" with China's Xi Jinping, saying a deal between the two nations is taking place. "It’s not imperative, but I think we’re going to make a good deal … I won’t meet with China if we don’t make a deal. We are getting along with China very well," he told CNBC.
According to data, China has a trade surplus of USD 300 billion with the US. In addition to this, China also controls 90 per cent of the world's rare earth mineral processing capacity, which could be a reason why Washington is taking a soft stand against Beijing, as per experts.
Trump also ignores NATO
Members of NATO also trade with Russia, but Trump has ignored them as well, possibly to avoid a direct confrontation with them. It must be noted that Trump needs to keep NATO united to keep Russia in check in Europe.
So, why is Trump irked with India?
India ranks ninth on the list of trading partners of the US. However, Trump is irked because the US has a trade deficit of USD 45 billion against India's USD 87 billion exports to Washington. Because of this, Trump has said that India has not been a good trading partner.
Thus, Trump aims to reduce this deficit by forcing India to buy more arms and ammunition, and oil and gas from the US. Notably, India's purchase of US crude has also increased by 50 per cent since Trump came to power in January this year, as per the US Energy Information Administration.
Another fact that should be mentioned here is India's imports from Russia have also reduced by 9.8 per cent, amounting to USD 9.2 billion, as per the GTRI.
Trump wants more economic links, but ignores trade in services
While Trump wants more economic links, he is ignoring the trade in services between the two countries, as India is also a huge sender of students and tourists to the US. According to the Office of the US Trade Representative, the US total services trade (exports plus imports) with India totalled an estimated USD 83.4 billion in 2024. The US services exports to India in 2024 were USD 41.8 billion, up 15.9 per cent (USD 5.7 billion) from 2023.
So, what is India planning?
The Indian government has remained firm on its stand. Last week, Union Commerce and Industry Minister Piyush Goyal had also briefed Parliament about Trump's tariffs and said that the central government will take all steps to protect India's national interests.
