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Former President Donald Trump has said he plans to raise tariffs on India because the country continues to buy oil from Russia. In a post on his platform, Truth Social, Trump claimed that India is not only buying large amounts of Russian oil but also reselling some of it on the global market to earn profits. Because of this, he said he would be “substantially raising” the tariff India pays to the United States.
Trump has already warned of a new 25 per cent minimum tariff on goods from India, which could begin by the end of this week. Right now, Indian goods face a 10 per cent minimum rate. However, Trump has not clearly stated what the new rate will be if India continues its oil trade with Russia.
India has pushed back against these threats. Officials say it is unfair to blame them for buying Russian oil, especially when both the US and the European Union also continue to trade with Russia in various ways. The Indian Ministry of External Affairs explained that India started buying oil from Russia only after its earlier suppliers shifted their focus to European countries following the Russia-Ukraine war.
The ministry said India’s oil imports are not about politics but about ensuring stable and affordable energy for the Indian people. They also said that India, like any major economy, will take all steps needed to protect its own economic safety and national interest.
The way tariffs work is that they are paid by importers, which usually means American companies and consumers end up paying higher prices for foreign goods. However, these higher prices can reduce demand, which may lead countries like India to lose business or shift trade elsewhere.
Trump’s latest threat comes while he is trying to push Russian President Vladimir Putin to agree to a ceasefire in Ukraine. He recently shortened his timeline for that deal to happen, adding more urgency to his demands.