U.S. Tariffs Hit India Over Russian Oil & Arms Deals — Economic Tensions Rise
The $TRUMP administration has turned up the heat on India, imposing 25% tariffs on Indian goods in response to its ongoing oil and defense trade with Russia. This marks the strongest rebuke yet, as top White House aide Stephen Miller declared on Fox News that India’s purchases of Russian oil are “not acceptable,” even suggesting India now rivals China in buying Russian crude.
Despite mounting U.S. pressure, India has remained firm. Officials in New Delhi signaled no plans to cut ties with Moscow, and the Indian embassy in Washington has stayed silent. Meanwhile, President Trump is threatening 100% tariffs on any country continuing to import Russian oil unless a “major peace deal” is reached with Ukraine.
These new tariffs are already rattling India’s economy. Economists at ICRA slashed the country’s GDP growth forecast from 6.5% to 6.2%, calling the tariffs a significant headwind. Nomura echoed the warning, projecting a 0.2% GDP hit. Indian stock markets responded swiftly, closing in the red as investor concerns deepened.
This economic rift comes despite Trump’s “tremendous” personal ties with PM Modi and follows months of efforts to build a new U.S.-India trade deal. India even dropped tariffs on U.S. goods like bourbon and Harley-Davidson motorcycles—yet Washington remains focused on reducing its $45B trade deficit.
As Ukraine steps up strikes inside Russian territory, the U.S. appears ready to tighten the noose—not just on Moscow, but on those still trading with