Trade War Heats Up: Trump Threatens ‘Substantial’ Tariff Hike on India Within 24 Hours

US President Cites Russia Ties and Trade Imbalance as He Vows to Escalate Tensions; New Delhi Fires Back, Accusing Washington of Unjustified Hypocrisy.

Washington D.C. [US] – August 5, 2025: The diplomatic and trade relationship between the United States and India has taken a sharp turn for the worse, with US President Donald Trump escalating his rhetoric by threatening to “substantially” raise tariffs on India within the next 24 hours. The stunning ultimatum comes just a day after he first vowed to punish India for its continued purchase of Russian oil and military goods.

In a fiery interview with CNBC, Trump once again leveled his familiar accusation that India imposes the highest tariffs on US goods in the world, framing the nation as an unfair trading partner.

“India has not been a good trading partner because they do a lot of business with us, but we don’t do business with them. So we settled on 25 percent, but I think I’m going to raise that rate quite substantially in the next 24 hours,” said Trump. He didn’t stop there, linking the trade dispute directly to global geopolitics. “They’re buying Russian oil and fueling the war machine. And if they are going to do that, I’m not going to be happy,” the US president added with a clear tone of frustration.

The threat, however, was not met with silence. Earlier on Tuesday, Russia’s government swiftly hit back, slamming Trump’s warning and stating that such statements against its trading partners would be perceived as direct “threats” against Moscow itself, signaling the gravity of the global implications.

In a forceful and no-holds-barred rebuttal, the Indian government, through the Ministry of External Affairs (MEA), labeled the US threats as “unjustified and unreasonable.” Turning the tables on its accusers, India pointed out the hypocrisy of the situation, accusing the US and its European allies of targeting New Delhi while they themselves continue to trade with Russia.

“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation,” the MEA stated, making a powerful defense of its policy. The official statement further added, “However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.”

This latest round of threats follows a 25 percent tariff that Trump had already imposed on India ahead of his August 1 deadline. That initial tariff was a direct penalty for what the US views as India’s high rates for American goods and a punishment for New Delhi’s increasingly close ties with Russia and its participation in the BRICS bloc. As the world watches, the coming hours will determine the future of this rapidly deteriorating diplomatic and trade relationship.