- By Supratik Das
- Fri, 01 Aug 2025 08:33 AM (IST)
- Source:JND
Trump Tariff War 2025: US Secretary of State Marco Rubio on Thursday said that India's oil trade with Russia is "most certainly a point of irritation" in New Delhi's ties with Washington. US President Donald Trump announced a 25 per cent tariff on India and an additional penalty for buying Russian military equipment and energy. Rubio added that India's purchases of Russian oil are helping to sustain Moscow's war efforts in Ukraine. Echoing the same, a senior US official has stated that trade and geopolitical issues between Washington and New Delhi are too complicated to be solved overnight, as President Donald Trump slapped a high 25 per cent tariff on Indian products from August 7. The official cited by Reuters emphasised that while talks are ongoing, longstanding disagreements and India’s geopolitical alignments remain critical sticking points in the path toward a comprehensive trade agreement.
"Look, global trade - India is an ally. It's a strategic partner. Like anything in foreign policy, you're not going to align 100 per cent of the time on everything," Mr Rubio said when asked if President Trump is "upset" with India's oil trade with Russia. "India has huge energy needs and that includes the ability to buy oil and coal and gas and things that it needs to power its economy like every country does, and it buys it from Russia, because Russian oil is sanctioned and cheap and - meaning they have to - in many cases, they're selling it under the global price because of the sanctions. And that, unfortunately, is helping to sustain the Russian war effort. So, it is most certainly a point of irritation in our relationship with India - not the only point of irritation," he added.
The US Secretary of State also said that they have "many other points" of cooperation with India. "But I think what you're seeing the President express is the very clear frustration that with so many other oil vendors available, India continues to buy so much from Russia, which in essence is helping to fund the war effort and allowing this war to continue in Ukraine," he said. The comments follow a day after Trump, in an executive order and a post on Truth Social, blamed India for having excessive trade barriers, a too-close relationship with Russia, and being part of what he termed "anti-US groupings" such as BRICS. Trump claimed that the 25 per cent "reciprocal tariff" was needed because India had not adequately addressed trade imbalances and come into alignment with US interests on international security matters. "It is our challenges with India; they have always been quite a closed market," stated the US official. "There are a whole bunch of other geopolitical issues, membership in BRICS, buying Russian oil, these are not issues that get solved overnight."
The White House's comprehensive new tariff plan has revised rates for almost 70 countries, from 10 per cent to 40 per cent. The 25 per cent charge for India is among the highest and ranks below nations such as Myanmar and Laos. Trump's executive order, "Further Modifying The Reciprocal Tariff Rates," declared that nations not falling in line with the US on economic and security matters would be subject to these punishments. Whereas nations like Japan (15 per cent) and Britain (10 per cent) were also mentioned in the list, India was specifically named because of its high tariff policy, consistent trade surplus with America, and ongoing economic ties with Russia. “India is our friend, but we’ve done relatively little business with them because their tariffs are too high,” Trump said. “They’ve always bought the majority of their military equipment from Russia and are Russia’s biggest energy customer, along with China. These things are not good for anyone.”
Geopolitical Flashpoints: BRICS, Russia, and the Dollar
Today's tensions do not extend to trade only. Trump also criticized New Delhi for pushing back at Western pressure to disengage from Moscow after Russia invaded Ukraine in 2022. “I don’t care what India does with Russia,” Trump said bluntly. “They can take their dead economies down together.” He further added, “It’s an attack on the dollar, and we’re not going to let anybody attack the dollar.”
India has held firm on its stand, asserting that it holds strategic autonomy and will keep interacting with all international partners depending on national interest. Indian authorities have reaffirmed that historical and economic interests, especially in defense and energy, are the basis of the country's long-standing relationship with Russia. In spite of the tough words and fresh tariffs, both nations have kept conducting back-channel discussions. President Trump admitted that although Prime Minister Narendra Modi is a "friend," the US is not discounting additional talks to come to a mutually beneficial deal. "We're negotiating currently," he stated at a White House event. "India says it's prepared to significantly reduce tariffs. We'll see what happens. It doesn't matter much whether we reach a deal or we impose. Either way, money is going to pour into the United States." Trump also made it official that additional sanctions could be levied on India's buys of Russian defense hardware, such as S-400 missile systems, under the Countering America's Adversaries Through Sanctions Act (CAATSA).
According to the executive order, the new tariffs will come into force starting 12:01 a.m. EDT on August 7. Goods entering US markets from India and other countries will then be subject to the new ad valorem duties unless specific bilateral agreements are reached in the meantime. With wider geopolitical issues and entrenched economic interests involved, Washington and New Delhi have a difficult road ahead. But officials on both sides recognize that the strategic importance of the US-India relationship makes continued dialogue essential, regardless of increasing tensions.