US-India Trade Rift Deepens as Trump Alleges Oil Profiteering
In a sharp escalation of trade tensions, &nbsp;<a title="US" href="https://www.benefitnews24.com/business/trump-tariff-tsunami-rattles-global-markets/17263" target="_blank" rel="noopener">US</a> President Donald Trump has accused <a title="India" href="https://www.benefitnews24.com/business/india-us-still-negotiating-tariff-deal/17233" target="_blank" rel="noopener">India</a> of profiting from discounted Russian oil imports, alleging that New Delhi is reselling it on international markets for &ldquo;big profits&rdquo;. The claims, made via Trump&rsquo;s social media platform Truth Social, come with a fresh threat: a substantial increase in tariffs on Indian goods entering the United States.
Trump alleged India is "unconcerned" about the ongoing war in Ukraine and claimed that its continued energy ties with Moscow indirectly bolster the Russian war machine. &ldquo;They don&rsquo;t care how many people in Ukraine are being killed,&rdquo; Trump declared. He added that India and Russia were &ldquo;dead economies&rdquo; and warned that his administration, if elected again, would not tolerate such &ldquo;double-dealing&rdquo;.
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This marks the second time in months Trump has signalled punitive action, having previously floated a 25 percent tariffon Indian exports. He also hinted at an unspecified &ldquo;penalty&rdquo; for India&rsquo;s ongoing defence purchases from Russia, which include legacy systems and new deals under negotiation.
India, while maintaining strategic autonomy, has consistently defended its energy imports as essential for national economic stability. Indian officials argue that Russian oil, which constitutes a significant share of its crude basket, is refined domestically for local use&mdash;not global resale.
However, the rhetoric out of Washington is intensifying. US Senator Lindsey Graham recently revealed that a sanctions bill, co-sponsored by 84 senators, proposes a 500 percent tariff on goods from nations&mdash;specifically India and China&mdash;buying Russian oil without aiding Ukraine. The bill, although yet to pass, would grant the US President sweeping powers to pressure global oil trade participants.
While China has called this demand a &ldquo;major hurdle&rdquo; in trade talks, India has neither committed to halting Russian imports nor responded to Trump&rsquo;s latest barrage. Experts fear these moves could derail ongoing US-India trade negotiations and upend the fragile trust built over the last decade.
<h3 data-start="2502" data-end="2584">ALSO READ: https://www.benefitnews24.com/business/when-us-india-trade-meets-russia-oil-/17370</h3>
Trump&rsquo;s aggressive posture risks pulling Indo-US trade ties into a geopolitical crossfire. His framing of India as a profiteer in wartime oil dynamics could strain diplomatic warmth built under previous administrations. If implemented, higher tariffs may push India to deepen regional alliances and reconsider future defence and trade alignments. New Delhi will likely wait for broader consensus within Washington before reacting firmly, but the tone signals a volatile path ahead.

US President Donald Trump with Indian Prime Minister Narendra Modi

Trump threatens tariffs, accuses India of reselling Russian oil to profit amid Ukraine war

Trump Targets India Over Russian Oil Links

Trump threatens tariffs, accuses India of reselling Russian oil to profit amid Ukraine war

August 5, 2025 | 02:50 IST