Tariffs hit India after oil and arms trade with Russia

Trump’s White House has called out India for helping fund Russia’s invasion of Ukraine by keeping its oil deals with Moscow alive, without an ounce of evidence, as per usual.

On Sunday, Stephen Miller, who serves as deputy chief of staff and is one of Trump’s top aides, told Fox News that President Trump made it “very clear” that India’s continued purchases of Russian oil are “not acceptable.”

According to Reuters, Miller said, “People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact.” His remarks are the sharpest criticism yet from this administration toward a country that Washington still considers a key player in the Indo-Pacific.

India hasn’t responded publicly to the White House. The embassy in Washington stayed silent, and officials in New Delhi made it known they plan to continue buying Russian oil—regardless of what the U.S. says. The reaction comes just as Trump escalated things further by hitting India with tariffs.

Tariffs hit India after oil and arms trade with Russia

On Friday, the U.S. activated a 25% tariff on Indian goods. The penalty is tied to two things: India’s energy dealings with Russia and its purchase of Russian military gear. Trump didn’t stop there. He’s also threatening 100% tariffs on any country that keeps buying Russian oil unless Russia agrees to a “major peace deal” with Ukraine.

Even with that pressure, Miller made a point of saying that Trump has a “tremendous” relationship with Narendra Modi, India’s prime minister. But there was no indication that this relationship would stop the White House from punishing India for funding Russia’s war effort.

While Trump ramps up tariffs, Ukraine is stepping up its strikes. Over the weekend, Ukraine’s Unmanned Systems Forces announced it hit a refinery in Ryazan, located about 180 kilometers from Moscow. The drone attack caused a fire on site. Ukrainian forces also hit an oil storage site in Russia’s Voronezh region.

Ukraine launches strikes as India’s economy takes a hit

Ukraine’s intelligence agency, the SBU, said it also targeted the Primorsko-Akhtarsk military airfield, which has been used to launch drone attacks against Ukraine. Ukrainian forces also struck a Russian electronics factory during the latest wave of attacks. These strikes came as the Trump administration turned its attention to economic pressure on Russia’s trade partners, starting with India.

The U.S. tariffs are already shaking up India’s economy. Aditi Nayar, chief economist at Icra, said, “The tariff (and penalty) now proposed by the US is higher than what we had anticipated and is therefore likely to pose a headwind to India’s GDP growth.” Icra recently lowered India’s growth forecast from 6.5% to 6.2% for this financial year, citing the tariff increase.

Nomura, another brokerage, agreed. They called the tariffs “growth negative” and warned that India’s GDP might drop by 0.2%. Investors reacted fast. On Friday, India’s stock markets closed down, ending the week in the red. The message from markets was clear. These penalties aren’t being ignored.

Over the last few months, India and the U.S. have been trying to finalize a new trade agreement. As part of that, India dropped tariffs on American products like Bourbon whiskey and motorcycles. It wasn’t enough. Trump is focused on narrowing the $45 billion trade deficit the U.S. has with India, and these new penalties are his next move.

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