
Trade tensions between the U.S. and India just got more serious. Former U.S. President Donald Trump, who is campaigning for a second term, has announced a sharp increase in tariffs on Indian goods—raising the total duty to 50%. His main issue? India’s continued purchase of oil from Russia.
In a recent statement, Trump accused India of indirectly supporting the ongoing Russia-Ukraine conflict by buying crude oil from Moscow. According to him, such trade undermines Western efforts to pressure Russia economically. As a result, he’s decided to raise tariffs on Indian exports entering the U.S., which could significantly affect industries like textiles, auto parts, and pharmaceuticals.
Indian officials haven’t yet responded formally, but the move is expected to be discussed at upcoming trade and diplomatic meetings. While India has defended its oil imports as necessary for domestic energy security, Trump’s stance reflects a tougher, unilateral approach.
This escalation comes at a time when the global economy is still recovering from inflation and supply chain challenges. For businesses and consumers in both countries, the tariff hike could mean higher prices and slower trade.
Whether this pressure tactic will force a policy shift remains to be seen. But it’s clear that U.S.-India relations could face new hurdles if this dispute continues.