Former US President Donald Trump has reignited debate around US-India trade relations by claiming that he imposed a 50% tariff on Indian goods during his presidency. The move, according to Trump, was intended to penalize New Delhi for its continued oil imports from Russia, which he described as a key factor in funding Moscow’s economy. His remarks have once again highlighted the fragile balance between India’s energy security needs and its strategic partnership with the United States.
In a recent Fox News interview, Trump stated that India was Russia’s largest oil customer during his tenure. To counter this, he claimed to have imposed a 50% tariff on India, describing it as a tough but necessary step.
“India was their biggest customer. I put a 50% tariff on India because they are buying oil from Russia. That is not an easy thing to do; that is a big deal and it causes a rift with India,” Trump said.
The remarks come at a time when global scrutiny on India’s oil imports from Russia remains high, particularly in the wake of Western sanctions following the Ukraine war.
Reports suggest that Trump had also urged the European Union to impose 100% tariffs on India and China for continuing to buy Russian oil. The intention, according to him, was to mount pressure on Moscow and restrict its oil revenues, a crucial funding source for its war in Ukraine.
While the EU did not implement Trump’s suggestion at the time, the statement underscores his administration’s aggressive approach to linking trade policy with geopolitical strategy.
India and the US have witnessed periods of strain over the issue of Russian oil imports. The Modi government has consistently defended its decision, stressing that affordable Russian crude is vital for ensuring energy security for 1.4 billion citizens.
New Delhi has maintained that its energy purchases are based on national interest, not politics. This has often placed India at odds with Washington, which has sought to reduce global dependency on Russian oil.
In August, the United States imposed an additional 25% tariff on selected Indian goods, pushing overall duties on some items up to 50%. This represented one of the highest tariff rates imposed on any US trade partner.
These tariffs added further strain to bilateral trade ties, with India calling for fairer treatment and reciprocity in market access.
Trump has also openly criticized India’s diplomatic engagements with Russia and China. His remarks intensified after Prime Minister Narendra Modi appeared alongside Russian President Vladimir Putin and Chinese President Xi Jinping at the Shanghai Cooperation Organization (SCO) summit in China.
On his Truth Social platform, Trump called trade with India “a totally one-sided disaster”, although he later claimed India had offered to remove tariffs on US goods in future negotiations.
Interestingly, Trump appeared to moderate his stance shortly after his critical remarks. On September 6, he told reporters that the US and India shared a “special relationship” and that there was “nothing to worry” about.
This shift in tone suggested that despite the rhetoric, both nations were working towards progress in trade talks. Officials confirmed that discussions were ongoing, particularly around tariffs, agriculture, and technology cooperation.
While progress has been made, several contentious issues continue to challenge US-India trade negotiations:
Agriculture and Dairy Market Access: The US has pressed India to open its agricultural and dairy sectors, but Indian officials argue this could hurt millions of small farmers.
Tariff Reductions: India seeks greater access for its exports, while the US wants deeper tariff cuts on goods such as automobiles and farm products.
Energy Security: India remains firm that Russian oil imports will continue, with Finance Minister Nirmala Sitharaman reaffirming this stance recently.
Conclusion
Donald Trump’s claim of a 50% tariff on India over Russian oil imports highlights the complex intersection of trade, geopolitics, and energy security. While his remarks reflect the challenges of balancing strategic alliances with national interests, they also underline the shifting dynamics of US-India relations.
Despite friction over tariffs and Russian oil, both governments continue to emphasize cooperation, signaling that while disagreements persist, the India-US partnership remains strategically important for both nations.