U.S. President Donald Trump has threatened to sharply increase tariffs on Indian goods due to India’s ongoing purchases of Russian crude. New Delhi has responded forcefully, accusing Washington and Brussels of double standards.
India continues to draw global criticism over its decision to import oil from Russia, a move President Trump says is unacceptable. In a strongly worded interview, Trump announced plans to raise tariffs on Indian exports to “very substantial” levels within 24 hours, citing what he termed India’s “fueling of the war machine” in Ukraine
While the U.S. initially imposed a 25% tariff in late July, the latest threat signals escalated pressure. The Trump administration also dismissed India’s offer of zero-import tariffs on U.S. goods, branding it insufficient given India’s continued Russian oil purchases
New Delhi has pushed back hard. A statement from the Ministry of External Affairs called the U.S. action “unjustified” and accused both the U.S. and EU of “double standards”—pointing out that these nations continue buying energy and machinery from Russia while punishing India for its trade choices
India, which sources over a third of its oil from Russia, defended the decision as a stabilizing factor in global energy markets and a strategic necessity to shield domestic consumers from price shocks
Economic Impact & Markets:
Investor confidence has taken a hit. Indian equity benchmarks opened flat to lower on Tuesday amid rising concerns over trade tensions. The Nifty futures pointed to a cautious start at around 24,722—reflecting continuous foreign outflows seen over the past 11 trading sessions
Markets are also watching the Reserve Bank of India’s policy review later this week, with analysts speculating a possible rate cut to support growth under pressure from external headwinds
Political Reactions & Context:
The issue has sparked heated political debate domestically. Opposition parties, especially the INDIA bloc, have defended the right to public figures like Rahul Gandhi to express opinions—criticizing the Supreme Court’s recent remarks about Gandhi as “unwarranted” and affirming the constitutional duty to speak on national affairs
Meanwhile, Congress has designated August 5 as a “Black Day” in Jammu & Kashmir, calling attention to the revocation of statehood from 2019 and demanding its restoration—a focal point of political dissent in the region
0 Comments