Pakistan, Aug. 7, 2025 – US President Donald Trump has announced plans to raise tariffs on India “very substantially” within the next 24 hours, criticizing New Delhi’s purchase and resale of Russian oil.
Trump expressed frustration over India’s growing trade with Russia, saying such actions support the “war machine” and cannot be ignored by the United States.
Speaking in an interview, Trump claimed India imposes the highest tariffs globally and has not been a fair trading partner.
While India recently offered the US zero tariffs under a new deal, Trump said it wasn’t enough, given their continued oil trade with Russia. He insisted that buying Russian oil while seeking trade benefits from the US is unacceptable.
Trump emphasized that although India is opening its market, their profits from Russian oil weaken US interests.
He stated, “We settled on 25 percent, but now I’m going to raise that very substantially.” He also accused India of blocking American business by keeping tariffs high, while making massive profits at the same time.
In addition to targeting India, Trump also focused on curbing “transshipment” – the tactic of rerouting goods through third countries to avoid tariffs.
He warned that such goods will now face an additional 40 percent duty. This move is aimed at countries that act as middlemen for Chinese exports to dodge US trade penalties.
Analysts believe these steps are designed to reduce US dependence on Chinese supply chains while pressuring other countries to avoid helping China bypass restrictions.
Nations like Vietnam have benefited from earlier trade diversions, but Trump now appears determined to limit that strategy’s effectiveness as well.
As global markets react to these aggressive measures, experts warn that drawing the line between original and processed goods will be challenging.
Customs authorities may struggle to track transshipment accurately, especially in countries closely aligned with China and less motivated to assist US enforcement efforts.
