In recent remarks, former U.S. President Donald Trump accused India of profiting by buying discounted Russian oil and reselling it on the open market. He claimed that India’s actions disregard the human cost of the Ukraine war and, as a result, announced plans to raise tariffs on Indian exports starting August. Specifically, he has already imposed a 25 percent tariff and threatened additional penalties tied to India's Russian energy and defence imports.

Trump shared these views on his social media platform, asserting that India is deliberately exploiting the conflict for financial gain. He emphasized that countries engaging in such trade especially Russia oil would face “substantial” U.S. trade penalties.

India's Foreign Ministry termed Tariff's threats as "unfair and impractical". Officials defended India's strategy, saying that Russian oil was procured a practical need, which was done due to market conditions, not due to any political alliance with Moscow. They also pointed out that many Western countries continue similar trade with Russia. India now faces growing financial exposure. Analysts estimate that cutting off Russian oil imports could increase its annual energy import costs by $9–11 billion, especially if U.S. secondary sanctions come into play. This escalating dispute marks a shift from earlier cordial ties between Trump and Indian leadership. While Trump once praised Prime Minister Modi, current tensions illustrate a sharp turn in bilateral relations particularly over trade and energy policy.

India suggests it will helpful its national interests amid growing pressure. The government has reiterated commitment to a fair and equal trade deal with the U.S. while maintaining its energy security strategy in a challenging global environment.