US President Donald Trump has once again taken aim at India, threatening to hike tariffs "very substantially" within 24 hours, citing its continued purchases of Russian oil.

In an interview with CNBC, Trump said, "They're fuelling the war machine, and if they're going to do that, then I'm not going to be happy." He insisted that the issue wasn’t just the oil itself, but how India is allegedly profiting from it.

"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!!!" Trump said on his social media platform, Truth Social.

He had already imposed a 25 percent tariff on Indian goods last week, but now claims that is not enough. A reported offer from India of zero tariffs on American goods was dismissed by Trump, who said, “That’s not good enough, because of what they’re doing with oil.”

Nikki Haley warns against double standards

Nikki Haley, former US Ambassador to the UN and one of the Republican Party's most visible Indian-American figures, criticised Trump’s position. She accused him of showing leniency to China while pushing away India, a long-standing American ally.

Posting on X, Haley said, “India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don’t give China a pass and burn a relationship with a strong ally like India.”

Her remarks came hours after Trump praised his ties with Chinese President Xi Jinping during the same CNBC interview.
"We have a very good relationship," Trump said, adding that he could meet Xi before the end of the year, “most likely, if we make a deal.” He added, “We’re getting along with China very well. My relationship with them is very good. I think we’ll make a good deal.”

India pushes back: Trade threats are unfair

India was quick to respond. The Ministry of External Affairs and the Ministry of Commerce both issued strongly worded statements defending the country's energy policy and slamming the US and EU for what they called hypocritical criticism.

A statement from the MEA spokesperson said, “In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy markets stability. India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation.”

The spokesperson pointed out that “the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.”

According to India’s data, the European Union had bilateral trade in goods worth €67.5 billion with Russia in 2024, along with €17.2 billion in services in 2023. EU’s energy imports from Russia also broke records, with 16.5 million tonnes of LNG imported last year.

"Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals. In this background, the targeting of India is unjustified and unreasonable," the statement added. "Like any major economy, India will take all necessary measures to safeguard its national interests and economic security."

Trump's tariff war: Sovereignty, not surrender

India’s official line remains unchanged: its energy choices are based on sovereign decisions and guided by market dynamics.

MEA spokesperson Randhir Jaiswal said last week, “You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation. We are not aware of any specifics.”

Responding to questions about Trump’s remarks, he clarified, “Our ties with any country stand on their merit and should not be seen from the prism of a third country. As far as India-Russia relations are concerned, we have a steady and time-tested partnership.”

India has also reiterated that sectors like agriculture and dairy are non-negotiable in trade talks. The Ministry of Commerce stated, “The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”

At the start of the Ukraine conflict, the US had welcomed India’s role in stabilising oil markets. But as India emerged as the largest seaborne buyer of Russian crude, at around 1.75 million barrels per day in the first half of 2025, Washington's view shifted.

Trump’s change of tone also comes despite the US-China deal struck in May, where both countries agreed to a 90-day tariff pause. During this period, US duties on Chinese goods were reduced from 145 percent to 30 percent, and China dropped its own tariffs from 125 percent to 10 percent, according to Al Jazeera.

In contrast, India faces heightened tariffs and threats of further penalties.

Trump’s approach risks creating further friction at a time when India and the US were believed to be making headway on a potential interim trade deal. Those hopes now seem to be on hold.

Experts warn that if India were to halt Russian oil imports under pressure, global crude prices could spike to 200 dollars a barrel, hurting consumers worldwide.

As tensions grow, one thing is clear: India will not be strong-armed. Its message to Washington is straightforward, energy security is non-negotiable, and trade threats won’t change that.