Trump Hits India with 50% Import Tariffs

In a vow to put pressure on Russia to agree a ceasefire and then peace deal with Ukraine, President Trump is now targeting countries that still trade with Russia.  This is aimed at cutting off money supplies for Russia to ‘kill off’ their war machine.

Originally, relations between President Trump and Indian Prime Minister Modi, we good.  Just 6 months ago they agreed a trade deal that looked set to double trade between the two countries up to $500bn by 2030.

India has a desperate need for power given its massive population and growing economy.  In 2021, India was importing 100,000 barrels of oil per day and now, in 2025, going against most of the world with trade embargoes with Russia, India is now importing an average of 1.796 million barrels per day.  That’s a staggering 18 X fold increase in 4 years and brings in an estimated.  It is estimated that India is currently importing 2.25 million barrels of Russia Oil a day and at say £50 a barrel, that’s a daily revenue from India alone at $112,500,000 per day or $45 billion per year.  A huge war chest.

Comment

Trump wants peace by cutting Russia’s revenue supply and also wants India to buy more US oil , India currently imports just 200,000 US barrels a day.  With a trade tariff on India at 50%, this will either work as India needs global trade to grow but will Modi want to ‘save face’ and not ‘kowtow’ to the US?  Equally, a cheap oil supply from Russia is very tempting.

We will see how this goes.  India’s Nifty 50 Stock Index is now down 7.3% off its year high and down 3.4% in a month.  This doe shave repercussions not just in India but for many countries including the EU.  All eyes now to China as the biggest importer of Russian oil, with the US deadline for a deal on tariffs on Chinese goods on 12^th August (next Tuesday).  Markets could be volatile.