Trump Slaps 50% Tariffs on India Over Russia Oil Trade
Trump’s 50% Tariffs on India Strain Ties Amid Russia Oil Dispute
WASHINGTON/NEW DELHI – President Donald Trump has ramped up pressure on India over its energy trade with Russia, a major funding source for Moscow’s war in Ukraine. The sweeping new tariffs—set at 50 percent—mark some of the harshest trade measures against a U.S. partner, raising concerns about a fresh rift in Washington-New Delhi ties.
The move comes as Trump pursues an aggressive campaign to end the Ukraine conflict, while also reviving his signature tariff strategy since returning to the White House in January. Although India’s key exports such as steel, aluminum, and automobiles remain exempt for now, smaller industries are already feeling the squeeze.
Trade Shockwaves
The United States was India’s largest export market in 2024, buying $87.3 billion worth of goods. But exporters warn that the 50 percent duty is comparable to a trade embargo, leaving smaller firms most vulnerable.
Textile, seafood, and jewelry exporters report canceled orders and lost contracts to rivals, including Bangladesh and Vietnam—raising fears of mass layoffs. Analysts caution that the ripple effect could spread across India’s manufacturing hubs.
India Pushes Back
New Delhi has denounced the tariffs as “unfair, unjustified, and unreasonable.” Prime Minister Narendra Modi, in his Independence Day address, pledged tax relief at home while reiterating India’s commitment to self-reliance.
Indian officials argue that their Russian oil imports—nearly 36 percent of crude supplies in 2024—were once encouraged by Washington to stabilize global markets. These purchases saved India billions and kept fuel prices steady, they note.
But U.S. officials remain unmoved. “India doesn’t appear to want to recognize its role in the bloodshed,” Trump trade adviser Peter Navarro said, accusing New Delhi of “cozying up” to Chinese President Xi Jinping.
Trust Eroding
Trade experts warn that the tariffs could inflict long-term damage. Wendy Cutler of the Asia Society Policy Institute, a former U.S. trade negotiator, told AFP that India has been opening its markets in recent years, yet is now “facing among the highest tariffs imposed by the U.S. against any partner.”
“The high tariffs have quickly eroded trust between the two countries, which could take years to rebuild,” she said.
Wider Tariff Strategy
India is not alone. Trump has imposed fresh duties on dozens of economies since early August, citing trade deficits and “unfair practices.” Allies and rivals alike—including the European Union, Indonesia, and Brazil—have been targeted.
Brazil, whose former president Jair Bolsonaro faces coup-plotting charges, saw its tariffs rise to 50 percent this month, though with exemptions similar to India’s.
For now, the spotlight remains on New Delhi as it weighs the costs of Trump’s escalating trade war—caught between U.S. pressure, reliance on Russian oil, and an uncertain diplomatic path ahead.
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