President Donald Trump has imposed punishing 50 per cent tariffs on Indian imports after designating Russia as an “extraordinary threat” to American national security, marking a dramatic escalation in his administration’s economic warfare over the Ukraine conflict.
The US leader announced the additional 25 per cent trade levy on Wednesday through an executive order, bringing total tariffs on Indian goods to 50 per cent. The secondary sanctions target India’s continued purchases of Russian oil, which provide crucial revenue for Moscow’s military operations in Ukraine. The measure came hours after Trump’s special envoy Steve Witkoff concluded his fifth unsuccessful meeting with Vladimir Putin in Moscow.
I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil,” Trump stated in his executive order, following what he described as receiving “additional information from various senior officials” regarding Russia’s actions in Ukraine.
Failed Moscow Negotiations Trigger Economic Response
The sanctions announcement followed a three-hour meeting between Witkoff and Putin at the Kremlin on Wednesday, which Russian presidential aide Yuri Ushakov characterised as “useful and constructive” despite failing to produce any breakthrough. The talks revealed a significant gap between Russian and American positions on ending the three-year conflict.
Russian officials proposed only a limited “air truce” that would halt missile and drone strikes on Ukrainian cities, falling far short of Washington’s demand for an unconditional 30-day ceasefire to establish conditions for permanent peace negotiations. The Kremlin’s proposal notably excluded any cessation of ground operations, where Russian forces have been making incremental gains.
“The dialogue continues and the United States continues its efforts to mediate in the search for a Ukrainian settlement,” Ushakov told reporters, claiming both sides had exchanged “signals” regarding Ukraine and discussed strategic cooperation between the two nations. However, no concrete progress was announced.
Trump had issued an ultimatum to Putin demanding agreement to a ceasefire by Friday or face additional economic penalties targeting Russia’s trading partners. The president expressed mounting frustration with the Kremlin’s continued bombardment of Ukrainian cities, which set a new monthly record in July with 6,443 drone and missile strikes.
India Becomes First Target of Secondary Sanctions
India, which has emerged as Russia’s largest oil customer by volume since Western sanctions were imposed following the 2022 invasion, now faces the highest tariff rate among major US trading partners. Russian crude accounts for approximately 36 per cent of India’s total oil imports, with Moscow offering heavily discounted prices.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Trump wrote on social media. “They don’t care how many people in Ukraine are being killed by the Russian War Machine”.
India’s Ministry of External Affairs responded sharply, calling it “extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest”. The ministry defended India’s purchases as based on “market factors” and necessary for ensuring “the energy security of 1.4 billion people”.
The escalation marks a significant departure from the Biden administration’s more tolerant approach to India’s Russian oil purchases, which were seen as helping to stabilise global energy prices. India increased imports dramatically after Russia offered discounted oil following the 2022 invasion, rising from just 100,000 barrels per day before the war to more than 1.8 million barrels daily in 2023.
Broader Economic Warfare Strategy
Trump’s executive order also directs the US Commerce Department, State Department, Treasury and other agencies to monitor other countries’ oil trade with Russia and recommend similar actions if necessary. China, which remains Russia’s largest energy customer by dollar value, could potentially face similar measures.
“Anyone who buys sanctioned Russian oil should be ready for this,” Treasury Secretary Scott Bessent warned during trade talks in Stockholm, confirming he had delivered this message directly to Chinese counterparts. The administration has signalled that Trump’s threats to significantly escalate sanctions should be taken seriously and are not merely negotiating tactics.
The declaration of Russia as an “extraordinary threat” to US national security and foreign policy represents Trump’s strongest condemnation yet of Moscow’s actions. The designation provides legal authority for expanded economic measures and signals a hardening of the administration’s stance after months of unsuccessful diplomacy.
Washington could potentially expand sanctions against Russia’s “shadow fleet” of vessels that transport oil to India and China, further tightening the economic noose around Moscow’s energy exports. Analysts note these sales generate essential funding for Russia’s military campaign in Ukraine.
Ukraine Support Measures Advance
Alongside the sanctions, four European nations have reportedly committed to purchasing $1 billion (£790 million) worth of American weaponry for Ukraine, according to a programme established by Trump and NATO Secretary-General Mark Rutte. This development suggests growing international coordination on military support despite diplomatic setbacks.
Ukrainian President Volodymyr Zelenskyy welcomed the US pressure, stating: “The world has enough power to stop this and protect people. We rely on strong decisions from the US, Europe and the world regarding secondary sanctions on trade in Russian energy resources, on Moscow’s banking sector”.
Zelenskyy and Trump spoke by phone following the Witkoff-Putin meeting, with the Ukrainian leader describing it as a “productive conversation”. Ukraine continues to demand an immediate ceasefire followed by negotiations, whilst Russia insists on territorial concessions and Ukraine abandoning its NATO membership aspirations.
Economic Implications and Trade Tensions
The 50 per cent tariff on Indian imports represents one of the highest rates the US charges any trading partner and could significantly disrupt bilateral trade. The US ran a $45.8 billion (£35.5 billion) trade deficit with India last year, importing substantially more than it exported.
For India, which enjoys the US as its largest export market, the tariffs pose a serious economic challenge. Analysts suggest New Delhi may have limited leverage, noting that similar US pressure successfully forced India to halt Iranian oil imports during Trump’s first presidency in 2019.
“Trump is serious. He’s frustrated with Putin… India is going to have a tough choice to make,” said Bob McNally, president of consulting firm Rapidan Energy Group. Some of the Russian crude imported by India is refined and re-exported to other countries, as sanctions don’t cover products refined outside Russia.
Indian Foreign Secretary Vikram Misri had previously accused the US of “double standards”, likely referencing continued indirect Russian energy imports by some European Union members. However, India’s petroleum minister Hardeep Singh Puri struck a defiant tone, stating: “I’m not worried at all. If something happens, we will deal with it”.
Diplomatic Fallout and Future Prospects
The sanctions mark a significant deterioration in US-India relations, which Trump had previously cultivated during his first term. In 2019, he declared at a rally that India had “never had a better friend as President than President Donald Trump. The current crisis pits two nationalist leaders who had described their relationship in warm terms increasingly against each other.
Relations have soured over multiple issues, including Trump claiming credit for recent India-Pakistan ceasefire developments and his accusations that Indian oil purchases are “propping up a Russian war machine”. In a provocative move, Trump also announced a trade framework with Pakistan, India’s arch-rival, suggesting Pakistan might “be selling Oil to India some day”.
As Witkoff’s diplomatic efforts appear exhausted after five meetings with Putin, the focus shifts to economic pressure. The administration retains authority to modify the sanctions based on changing circumstances or policy shifts by Russia or India, leaving room for future negotiations.
With Trump’s Friday deadline looming and no ceasefire in sight, additional sanctions targeting other Russian trade partners appear increasingly likely. The president’s declaration of Russia as an extraordinary threat signals a potential shift from diplomacy to sustained economic warfare aimed at strangling Moscow’s ability to finance its military operations.
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