Recently, the US government announced a total 50% tariff on Indian goods, citing India’s continued oil purchases from Russia during the Ukraine conflict as the key reason. President Donald Trump made several remarks before and during his Alaska summit with Russian President Vladimir Putin, focusing strongly on India’s role in Russian oil trade.

Key Points From Trump's Statements

• India as a Major Buyer:
  In a Fox News interview, Trump asserted that "Russia has lost a big client of its oil, which is India. India was handling 40% of the Russian oil trade."

• Tariff as Penalty:
  Trump described the tariff hike as a penalty for India’s trade with Russia, saying "India will also have to pay a penalty for trading with Russia." He further hinted at imposing potential secondary sanctions, suggesting, "If I impose secondary sanctions now, it will be disastrous for them. If I have to do it, I will do it, maybe I won't even need to do it."

• Summit Outcomes:
  Despite a three-hour closed-door meeting with Putin in Alaska, no concrete results or consensus emerged. Trump’s demeanor indicated dissatisfaction and he warned, "if this meeting remains inconclusive, tariffs on India will be increased further."

• Timeline of Tariffs:

  • July 30: US imposed a 25% tariff on Indian goods.

  • August 6: Announced an additional 25% tariff, raising the total to 50%.

  • The new 25% tariff will take effect August 27.

Is India Still Buying Russian Oil?

Yes—despite US warning, India continues to buy Russian oil. Currently, about 35–40% of India's total oil imports are sourced from Russia, driven by discounted rates since sanctions began in 2022.

India's Response

The Indian government has accused the US and EU of unfairly targeting its trade, pointing out that Western countries themselves continue to import essentials from Russia. India maintains that its energy security and economic interests are paramount.