President Donald Trump issued a new tariff threat to India on Monday morning.
Trump wrote on Truth Social: “India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, 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”
Why It Matters
Last week, Trump imposed a 25 percent tariff on all Indian goods coming into the United States from August 1, as well as 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 of this year, India is one of the United States’ top trading partners. The nation had a year-to-date deficit of -28.9 billion dollars at the time.
Trump met with India’s Prime Minister Narendra Modi in February to discuss multiple topics, including 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.
Associated Press
What To Know
Following Modi’s visit to the U.S. in February, the White House said 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.
What People Are Saying
President Donald Trump, on Truth Social on Thursday: “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, chair of India’s parliamentary external affairs committee, told reporters: “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.”
What Happens Next
India indicated that it will continue buying oil from Russia, the Associated Press reported.
The Indian Foreign Ministry said its relationship with Russia was “steady and time-tested,” and should not be seen through the prism of a third country.
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Update 8/4/25, 1:05 p.m. ET: This article was updated with additional information.
