Washington/New Delhi, August 7, 2025 – In a dramatic escalation of trade tensions, U.S. President Donald Trump has issued a stern warning to India, just hours after doubling tariffs on a range of Indian goods to 50%. Speaking to reporters at the White House, Trump threatened to impose “secondary sanctions” if India continues to purchase crude oil from Russia.
When pressed about why such strict measures were being directed only at India and not other countries like China, which also import Russian oil, Trump responded assertively, “It’s only been eight hours. Just wait and watch. You’re going to see so many secondary sanctions, you’ll lose count!”
U.S. Tightens Grip Amid Strategic Oil Disputes
The message was clear: the U.S. is ramping up economic pressure on India, and this is just the beginning. The decision to double tariffs, announced in the early hours of August 7, marked a turning point in Indo-U.S. trade relations.
According to Trump’s administration, the increased tariffs—raised from 25% to 50%—were a response to India’s growing imports of Russian oil, which Washington claims undermines American national interests. However, observers suggest that the move is politically charged and selectively enforced.
Sources indicate that the U.S. government is considering additional tariff hikes within the next 21 days, potentially deepening the rift between the two democracies.
India Responds Firmly
The Indian government reacted swiftly. In an official statement, External Affairs Ministry spokesperson Randhir Jaiswal said:
“Our energy procurement decisions are driven entirely by market dynamics and national energy security. This policy is neither unfair nor impractical, and certainly not unjust.”
New Delhi also pointed out what it sees as blatant double standards. While India faces penalties, the U.S. and its European allies continue to engage in large-scale trade with Russia.
Ignoring Europe’s Imports?
Trump’s claim that Indian oil imports are indirectly financing Russia’s war in Ukraine has raised eyebrows, especially in light of Europe’s own trade practices. According to Reuters, since 2022, European nations have imported Russian energy worth €212 billion (over ₹19.4 lakh crore). Yet these countries have not faced U.S. tariffs or sanctions.
Ironically, America itself hasn’t entirely severed ties with Russian goods. U.S. Department of Energy data shows imports of:
- Uranium hexafluoride (for nuclear energy)
- Palladium (used in electric vehicles)
- Chemicals and fertilizers
Highlighting this hypocrisy, the Indian foreign ministry said:
“Those who criticize us continue to trade with Russia themselves.”
Impact on Indian Exports
Industry experts warn that the new tariffs could affect up to 55% of India’s exports to the U.S., especially in sectors such as:
- Garments
- Gems and jewelry
- Footwear
However, key sectors like pharmaceuticals and mobile phones remain exempt—for now—securing around $30 billion in export value.
What Comes Next?
To mitigate the fallout, the Indian government is actively working on relief measures for exporters, including subsidies and financial support.
Negotiations with Washington are expected within the next three weeks, but the mood is tense. Experts compare the current rift to the diplomatic strain following India’s 1998 nuclear tests.
Meanwhile, Prime Minister Narendra Modi’s potential visit to China and National Security Advisor Ajit Doval’s upcoming trip to Moscow are being viewed as strategic moves in the context of shifting global alliances.
A New Phase in India-U.S. Relations?
With Trump’s latest moves, India-U.S. relations may be entering their most turbulent phase in decades. While both countries have shared strategic interests, this latest episode underscores the fragility of that partnership when national agendas collide.