Crash. Claim. Controversy (4)

Trump Escalates Trade Row With India Over Russia Ties, Labels Economies ‘Dead’, Imposes 25% Import Tariff

Washington unleashed a scathing attack on New Delhi’s close ties with Moscow on Thursday by imposing a 25% duty on Indian imports. In a blistering outburst that stoked global trade tensions, US President Donald Trump called both economies ‘dead.’

The remarks, published on his social media website Truth Social, starkly escalate his hardline stance as he heads towards the 2026 midterms and have shaken investor sentiment in both nations.

I Don’t Care What India Does with Russia: Trump

Trump’s most recent comment followed a warning by former Russian President Dmitry Medvedev that Trump’s belligerent approach towards Moscow had the potential to start a war.

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump tweeted.

He also asserted that the US had ‘done very little business with India’ due to such tariffs, labeling them ‘among the highest in the world.’

The 25% tariff, which took effect on August 1, is viewed as explicit retaliation for India’s ongoing defence and energy ties with Moscow, which the US has consistently threatened could compromise Western sanctions against Russia.

Trump Fires Back at Russia and Medvedev

The jab followed only a few days after Medvedev, Russia’s deputy Security Council chair, condemned Trump’s ‘game of ultimatums’ as a risk of triggering a broader conflict.

“Every new ultimatum is a threat and an approach towards war, not between Ukraine and Russia, but with his nation,” Medvedev wrote on X.

Trump responded by attacking Medvedev and the Kremlin, declaring that the US and Russia ‘do very little business’ and continuing, “Let us keep it that way, and instruct Medvedev, the failed ex-President of Russia, to watch his words. He’s venturing into very treacherous terrain!”

Indian Markets Get Hit by Trade Shock

In India, Trump’s threat of tariffs had an immediate effect on market sentiment. The Nifty 50 dipped 0.61% to 24,703.1, and the Sensex declined 0.64% to 80,963.14 in initial trade on Thursday.

All 16 key sectors logged losses. Broader mid-cap and small-cap indices declined by 0.9% and 0.6%, respectively. Analysts said the scale of the proposed tariff could severely disrupt bilateral trade talks that were beginning to gain traction.

We’re Still Negotiating, Says Trump

Despite the aggressive tone, Trump insisted that negotiations were still ongoing.

“We are still negotiating. But they have to play fair,” he told journalists, suggesting the tariffs might be reevaluated if India is willing to provide trade concessions.

Washington and New Delhi were striving to broaden collaboration on digital trade, clean energy, and defence production, but Thursday’s events have put a cloud over that achievement.

Flashback to Trade Wars, and Warning

Trump’s reversion to tariff brinksmanship has been likened to his first-term trade wars with China and the EU. Analysts comment that India’s action seems more politically motivated than economically warranted, particularly as the US approaches another divisive election cycle.

Though New Delhi has not yet responded formally, officials will be cautious as they balance their strategic partnership with the US against increasing energy and defence cooperation with Russia.

As Trump again becomes a force to be reckoned with in US politics, his unfettered trade salvos are again setting America’s international partnerships and the markets on high alert.