India wants to keep buying oil from Russia, and President Donald Trump isn’t happy.
In a recent post on Truth Social, the U.S. president accused the South Asian country of funding the Russia-Ukraine war.
“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,” Trump said. More than 85% of India’s crude oil comes from Russia.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine.”
He announced he will “substantially” raise the tariffs on India.
In response to Trump’s latest remarks, Indian Ministry of External Affairs Randhir Jaiswal accused the U.S. and Europe of targeting India and called the tariffs, as well as the penalty, “unjustified and unreasonable.”
The trade war with India escalates
Jaiswal argued that India only began importing oil from Russia after “traditional supplies were diverted to Europe after the outbreak of the conflict” before noting the U.S. appreciated this move at the time as it kept the “global energy markets” stable.
Jaiswal also pointed to the double standards, saying the U.S. continues importing “uranium and hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals” from Russia. He did not indicate any plans for India to stop buying Russian oil, despite Trump’s latest threats.
This South Asian country caught Trump’s ire last week during his meeting with U.K. Prime Minister Keir Starmer, when Trump warned countries that, if they don’t reach a trade deal ahead of the Aug. 1 deadline set by his administration, they will face 15% to 20% tariff rates.
The European Union, Japan, the Philippines, Indonesia, the U.K., and even Pakistan had fallen in line and struck a deal.
Trump issued a warning to impose 25% tariffs, plus an unspecified penalty for India’s decision to continue trading with Russia, including buying arms from the U.S. adversary.
In the post on Wednesday, he said that because India has “the most strenuous and obnoxious non-monetary trade barriers” compared to other countries, in addition to high import taxes on foreign goods, the U.S. does “relatively little business with them.”
He also noted the U.S. has a $45.7 billion trade deficit with India, setting aside his longtime friendship with Indian Prime Minister Narendra Modi.
Will India stop buying Russian oil?
On Friday, Trump told reporters he “heard” India is changing course and will no longer buy from Russia. But, as CNBC reported, Indian officials refrained from confirming the fact.
Jaiswal defended his country’s trade decisions, saying it’s “based on the price at which oil is available in the international market and depending on the global situation at that time.”
Modi addressed the escalating trade war and the need to remain “vigilant” in a public address over the weekend, but he kept his reaction measured to avoid further upsetting his American counterpart.
“India is set to become the world’s third-largest economy,” he said, according to an Indian national news outlet. “Therefore, India must remain vigilant about its economic interests. Our farmers, our small industries, employment for our youth — their welfare is our top priority.
“The government is making every effort in this direction,” Modi said before noting the need to prioritize bolstering domestic production.
While India navigated tricky waters, Stephen Miller, a vocal Trump aide, called it unacceptable for India to continue financing Russia’s war against Ukraine.
“People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact,” Miller said on Fox News Sunday.
According to Reuters, an American delegation will visit New Delhi later in August. While Trump targets a wide range of countries through import taxes, the administration hasn’t finalized any deal with China, with the deadline extended to Aug. 12.