U.S. President Donald Trump has once again targeted India over its continued oil trade with Russia, threatening to impose steep tariffs on Indian imports if the country does not curb its purchases. Trump’s latest warning, posted on his Truth Social platform, accuses India of buying significant quantities of Russian crude oil and reselling it at a profit, despite the ongoing war in Ukraine.
Trump stated that unless Russia agrees to a ceasefire by August 8, he will enforce new tariffs of up to 100 percent on nations purchasing Russian energy. India was specifically mentioned, with Trump declaring his intention to significantly raise tariffs on Indian goods entering the U.S. market.
In response, India’s Ministry of External Affairs described the remarks as unjustified and affirmed the country’s right to determine its energy imports based on national interest and economic security. Indian officials clarified that there is no formal government order to halt Russian crude imports, though several state-run refiners have paused new Russian oil contracts due to narrowing price advantages.
Data indicates that India imported approximately 1.75 million barrels per day of Russian crude in the first half of 2025, a slight increase from the previous year. However, the attractiveness of Russian oil has declined recently as the discounts compared to other suppliers have diminished.
In anticipation of potential trade disruptions and to diversify its energy sources, Indian Oil Corporation (IOC) has procured around 7 million barrels of crude oil from non-Russian sources for September delivery. This includes 4.5 million barrels from the United States, 2 million from Abu Dhabi, and 0.5 million from Western Canada.
India’s financial markets reacted cautiously to the rising tensions. On August 5, the Nifty 50 index showed a marginal decline, and the Sensex dropped by 0.09 percent. The Indian rupee also weakened amid fears of trade retaliation, inching closer to record lows.
Analysts suggest that if tariffs are implemented, they could significantly impact India’s exports to the United States, particularly in sectors like textiles, pharmaceuticals, and information technology services. At the same time, India is walking a tightrope as it tries to maintain longstanding relations with Russia while addressing growing pressure from the United States and Western allies.
Trump’s latest position marks a stark shift from his earlier administration’s emphasis on strengthening U.S.-India ties. The threat of economic penalties now adds a new layer of complexity to the bilateral relationship as both countries navigate a challenging geopolitical environment shaped by the Russia-Ukraine war and global energy realignments.
As the August 8 deadline approaches, all eyes are on how India and other major oil importers respond to Trump’s ultimatum and whether Washington’s aggressive tariff strategy will translate into formal policy changes or further strain international relations.