Trump Slaps 50% Tariffs on India, Halts Trade Talks Over Russian Oil

Trump Shuts Door on Trade Talks with India Over 50% Tariffs, Cites Russian Oil Imports

United States President Donald Trump said there would be no trade talks with India until the two nations resolve their disagreements about tariffs.

The statement was made after Washington imposed retaliatory tariffs of 50% on Indian products. Half have been in effect since Thursday, and the remaining half are due August 27.

The step has aggressively ratcheted trade tensions between the world’s two largest democracies, with the White House attributing the sanctions to New Delhi’s ongoing oil imports from Russia.

Not Until We Get It Resolved: Trump

While attending a Thursday White House event celebrating National Purple Heart Day, Trump was asked whether he anticipated movement on trade negotiations with India following the tariff increase. Shaking his shoulders, he responded: “No, not until we resolve it.” 

The remark came after an executive order a day earlier, which placed a further 25% tariff on Indian imports. The order criticized India for “undermining the US to counter Russia’s harmful activities” by trading with Moscow, specifically in the energy sector.

Washington’s Case Against India

As reported by the White House, India not only bought Russian oil in defiance of Western sanctions but also sold it on the open market ‘at considerable profit,’ thereby boosting Moscow’s economy.

“India’s resale of this oil… further allows the Russian Federation’s economy to fuel its aggression,” said the statement, citing Russia’s invasion of Ukraine.

The Trump administration stated the tariffs would discourage nations from subsidizing Russia’s energy revenues and were meant to enforce ‘serious economic consequences’ on Moscow for its ‘persistent aggressions.’

Farmers’ Interests Non-Negotiable: PM Modi

Prime Minister Narendra Modi firmly reacted to the tariff announcement, stating that India would never make concessions to the interests of its farmer population, no matter the economic costs.

“For us, our farmers’ interest is our highest priority,” Modi stated on Thursday. “India will never compromise on the interests of farmers, fishermen, and dairy farmers. I know we will have to pay a heavy cost, and I am prepared to do that. India is prepared to do that.”

The Prime Minister’s remarks underscore New Delhi’s unwillingness to yield on trade policy measures, such as agricultural protections, that Washington has long criticized.

Growing Friction in Ties

The tariff standoff contributes to an expanding portfolio of bilateral irritants, ranging from market access and intellectual property rights to incompatible foreign policy views on Ukraine. 

Although both have characterized the relationship as strategically significant, recent events indicate that meaningful movement on trade deals is not on the horizon in the near term.

With the second tranche of tariffs looming in less than three weeks, Indian exporters are preparing for a precipitous hit on sectors from textiles to engineering goods.