India-US: India is not a good trading partner, says Trump

India-US: In a fiery turn of events that could reshape U.S.-India trade dynamics, former U.S. President Donald Trump on Tuesday doubled down on his controversial stance, threatening to significantly raise tariffs on Indian goods within the next 24 hours. His primary accusation: India’s continued imports of Russian crude oil—a move he claims is fueling Moscow’s war in Ukraine.

In a candid interview on CNBC’s Squawk Box, Trump launched a direct salvo, stating, “India has not been a good trading partner. They buy a lot from us, but we don’t do much business with them.” He added, “We settled on a 25% tariff, but I think I’m going to raise that very substantially because they’re buying Russian oil and fueling the Russian war machine.”

This sharp escalation marks a pivotal moment in U.S.-India relations, as Trump’s tariff threat on India sends ripples through diplomatic, trade, and global energy corridors.

India-US: India’s Russian Oil Strategy Under Fire

Trump’s grievance isn’t new, but it has gained renewed intensity in recent weeks. The former president accused India not just of buying oil from Russia, but also of allegedly re-exporting it for profit. In a scathing Truth Social post Monday, Trump declared, “India is buying massive amounts of Russian oil and 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.”

Despite previous optimism about an impending U.S.-India trade deal, issues around agriculture, dairy, and genetically modified crops have remained sticking points. And now, energy geopolitics has entered the fray.

India Responds: “Unjustified and Unreasonable”

India, for its part, issued a strong rebuttal via the Ministry of External Affairs (MEA). The official statement emphasized that India’s procurement of Russian crude is based on “national interest and energy security” in light of Western redirection of oil supplies during the conflict.

“India’s energy policy is driven by the need for affordable and stable supplies,” the MEA said. “Targeting India in this context is unjustified and unreasonable. Like any sovereign nation, India will continue to safeguard its economic security.”

Further, Indian diplomats pointed out the hypocrisy of the West, noting that several nations criticizing India are still involved in Russian trade themselves—not for essential reasons, but for profit.

Kremlin Breaks Silence: “Sovereign Right to Choose Partners”

In a rare but expected development, Russia weighed in on the matter, defending India’s autonomy in its trade decisions. Kremlin spokesperson Dmitry Peskov told reporters, “We believe sovereign countries have the right to choose their own trade partners. We do not consider such tariff threats as legitimate.”

Peskov characterized Trump’s remarks as “an attempt to coerce countries into severing ties with Russia, which is unacceptable.”

Economic Fallout and Investor Concerns

Global investors and trade analysts are watching closely. With India already slapped with a 25% tariff, Trump’s vow to raise it “very substantially” has triggered alarm across industries.

India’s exports to the U.S., especially in sectors like pharmaceuticals, textiles, IT services, and automotive components, stand to take a hit if duties spike. Indian businesses are now bracing for impact, with chambers of commerce urging diplomatic engagement to defuse tensions.

Back in the U.S., there are concerns among importers about the ripple effects on supply chains, costs, and bilateral investment flows. Trump’s statements, while politically charged, could impact real-world trade and manufacturing ecosystems.

Strategic Calculations Ahead

While Trump has consistently portrayed himself as a tough negotiator, critics argue that this rhetoric may undermine long-term U.S. strategic interests in the Indo-Pacific—especially when China continues to assert dominance in the region.

Several former diplomats have warned that alienating India, one of Washington’s key allies in the region, over its energy diversification strategy, could backfire diplomatically.

Trump, however, remains undeterred. “If India continues to do business with Russia, it can’t expect us to keep giving them free access to our markets. That’s just common sense,” he said on CNBC.

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