In a sharp escalation, President Donald Trump warned he would “substantially raise” tariffs on Indian goods within 24 hours—expanding beyond the 25% rate imposed earlier—due to India’s continued purchases of Russian crude.
He criticized India for “fueling the war machine,” dismissing the nation’s offer to eliminate its own tariffs on U.S. goods as inadequate. Trump’s outbursts have rattled exporters in textiles, gems, pharmaceuticals, and chemicals, which account for nearly half of India’s $85 billion annual exports to the U.S.
India’s commerce and external affairs ministries reacted swiftly, calling the threats unjustified and highlighting double standards, citing that Western countries also continue trade with Russia.
Market response was immediate: the Sensex dropped 0.38%, and the rupee weakened, reflecting renewed global risk-off sentiment.