US President Donald Trump has not been on the same page as India ever since the country chose not to adhere to his stance urging nations to stop purchasing Russian oil. Trump has once again issued a warning to India, suggesting the possibility of further tariff hikes in a social media post on Truth Social.
President Trump adopted a stern tone to criticise India for continuing oil trade with Russia, expressing concern that some of the imported oil is being sold on the open market. He also questioned India’s position amid the ongoing conflict between Russia and Ukraine.
Trump posted on Truth Social, “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 seem to care how many people in Ukraine are being affected by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA.”
I will be substantially raising the Tariff paid by India to the USA, says US President Donald Trump in a post on Truth Social.
"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.… pic.twitter.com/1fZlIDzyzx---Advertisement---— ANI (@ANI) August 4, 2025
While the statement has sparked discussion across diplomatic and trade circles, officials have yet to formally respond. The issue is likely to be a topic of focus in upcoming bilateral trade discussions.
the upcoming tariff hikes would impact a range of different supply chains, Indian exports to the US are projected to decline by nearly 30 per cent, from USD 86.5 billion in 2024-25 to about USD 60.6 billion in 2025-26, as the new 25 per cent reciprocal tariffs come into effect, according to Global Trade Research Initiative (GTRI).
According to a GTRI report on Monday, labour-intensive sectors such as garments, textiles, shrimp, jewellery, and engineering goods are among the worst affected.
The tariffs put India at a serious disadvantage compared to regional rivals like Vietnam, Bangladesh, and Mexico, who face lower or zero duties, it noted.
To cushion the blow and future-proof its trade strategy, the GTRI has recommended a targeted five-point action plan that includes financial relief for MSMEs, real-time trade intelligence, smarter use of FTAs, tourism reform, and streamlined onboarding for new exporters.
India faces a 25 per cent country-specific tariff and an extra unspecified ‘penalty’ on its exports to the US–one of the highest among Asian exporters, second only to China at 30 per cent. In contrast, competitors such as Vietnam (20 per cent), Bangladesh (18 per cent), Indonesia, Malaysia, and the Philippines (19 per cent), and Japan and South Korea (15 per cent) enjoy lower rates.
