New Delhi:  Trump argued that India, as one of Russia’s largest oil buyers, is helping fund Moscow’s military campaign in Ukraine. He indicated that the move is intended to punish the Kremlin economically and hinted at possible similar actions against China if it expands its purchases of Russian energy. While India faces heavy tariffs, the United States has extended a 90-day trade truce with China, delaying any new duties on Chinese imports.

The Indian government has condemned the decision as selective and unfair, pointing out that other major economies also import Russian energy without facing such punitive measures. In Parliament, ministers stressed that the US remains a key partner but said the country will protect its national interests. Officials are exploring diplomatic and economic options, including the possibility of imposing a 50% customs duty on selected US goods.

The tariff hike will impact a range of Indian export sectors, including textiles, machinery, chemicals, gemstones, cashews, carpets, and diamonds. Industry groups warn that the sudden cost surge could erode competitiveness in the US market and cause significant revenue losses for exporters.

US lawmakers have also voiced concerns over the move. Several members of Congress described the tariffs as reckless, warning that they could undo decades of strategic partnership between Washington and New Delhi. Analysts note that the announcement comes days ahead of a planned Trump–Putin meeting in Alaska on August 15, raising speculation that the tariffs could be part of a broader geopolitical strategy to pressure Russia into considering a ceasefire in Ukraine.

India’s refiners, which source around 38% of their crude from Russia, are expected to face rising costs if forced to diversify suppliers. Experts warn that this could cut refining margins, raise fuel prices, and increase the import bill. The growing rift could also prompt India to strengthen its trade ties with Russia and other partners, thereby further reshaping its global trade strategy.

The tariff dispute marks a significant strain in US–India relations, with both nations signaling readiness to defend their economic and strategic priorities as the global geopolitical landscape shifts.