Login to Continue Learning
On Monday morning, President Donald Trump issued a new tariff threat against India via Truth Social. He wrote, “India is not only buying massive amounts of Russian oil, they are then selling it on the open market for big profits. They don’t care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA. Thank you for your attention to this matter!!! President DJT”
Last week, Trump imposed a 25 percent tariff on all Indian goods coming into the U.S., effective August 1, and an unspecified extra penalty for India’s continued purchase of Russian oil amid the war in Ukraine.
According to United States Census Bureau data from May, India is one of the U.S.’s top trading partners. The nation had a year-to-date deficit of -28.9 billion dollars at that time.
In February, Trump met with India’s Prime Minister Narendra Modi to discuss trade and investment. The leaders set a goal for trade entitled “Mission 500,” which aims to more than double total bilateral trade to $500 billion by 2030.
Following Modi’s visit to the U.S., the White House said that the U.S. and India would work toward increasing market access and reducing tariff and non-tariff barriers. Products imported into the U.S. from India include pharmaceuticals and electrical components.
On Truth Social, President Trump stated, “I don’t care what India does with Russia. They can take their dead economies down together for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world.”
Indian lawmaker Shashi Tharoor said, “If the worst comes to the worst, we will have to diversify more out of the American market into other markets if we can’t compete in America. We are not without options. I mean, I think we have to understand we want and value the relationship with America, but if America is completely unreasonable in their demands, we will have to go elsewhere.”
India indicated that it would continue buying oil from Russia. The Indian Foreign Ministry stated its relationship with Russia was “steady and time-tested” and should not be seen through the prism of a third country.
Do you have a story that Newsweek should be covering? Do you have any questions about this story? Contact LiveNews@newsweek.com.
Update: 8/4/25, 1:05 p.m. ET: This article was updated with additional information.
