India will continue to buy Russian oil despite Trump threats

India will face a further hike on their current U.S.-imposed tariff rate of 25 per cent if they continue to purchase oil from Russia, U.S. President Donald Trump said on Aug. 4.

In a Truth Social post, Trump called India out for buying "massive amounts" of Russian oil, as well as for selling it on the Open Market "for big profits".

He accused India of funding Russia's war efforts against Ukraine through their purchases.

"They don’t care how many people in Ukraine are being killed by the Russian War Machine," he added.

"Because of this, I will be substantially raising the Tariff paid by India to the USA."

This is the second time Trump has warned of additional penalties on top of India's tariff rate.

On Jul. 30, he announced that the U.S. would impose a 25 per cent tariff on goods from India from Aug. 1, as well as additional penalties for India's purchasing of Russian oil and military equipment.

While it was unclear how much the penalty would be, the warning was supposedly to allow India to cease trade with Russia in the meantime.

"Unjustified and unreasonable"

Despite the threats, India will continue to purchase oil from Russia, two government sources told Reuters on Aug. 3

India has also fired back at Trump's latest announcement by calling it "unjustified and unreasonable", according to a statement by an official spokesperson from India's Ministry of External Affairs.

Addressing criticisms by the U.S. and European Union (EU) for their imports of Russian oil after the start of the Russia-Ukraine war in 2022, India said it was precisely because of the war that they began purchasing from Russia, as traditional supplies were being diverted to Europe.

"The United States at that time actively encouraged such imports by India for strengthening global energy markets stability," the statement added.

India also counter-accused the U.S. and EU of trading in similar or even larger quantities with Russia.

Europe has traded energy, fertilisers, iron and steel, among other goods with Russia, India claimed, while the U.S. continued to import nuclear ingredients, fertilisers and chemicals, among others.

"Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the statement concluded.

The actual amount of penalty remains unspecified for now.

Top images via Narendra Modi/Facebook & The White House/Facebook