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Trump Threatens 'Economic War' as 50% U.S. Tariffs on India Ignite Diplomatic Rift

The moves are part of a U.S. push to force progress toward RussiaUkraine talks by squeezing buyers of Russian oil.

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Chinese President Xi Jinping and Prime Minister Narendra Modi to meet on the sidelines of SCO summit.
Yoga guru Ramdev slammed the Donald Trump administration for imposing an additional 25% tariff on Indian goods.
President Donald Trump greets Russia's President Vladimir Putin on the tarmac at Joint Base Elmendorf-Richardson in Anchorage, Alaska, Aug. 15, 2025. (AP Photo/Julia Demaree Nikhinson)

Overview

  • Trump warned of an "economic war" if Moscow resists substantive talks and said he could use a "very strong tariff system" costly to Russia, Ukraine or others.
  • A 50% U.S. duty on Indian goods took effect on August 27 under Executive Order 14329, with the administration linking the step to India's purchases of Russian energy.
  • White House trade adviser Peter Navarro labeled the conflict "Modi's war," accused India of feeding Russia's war machine, and floated 25% tariff relief if New Delhi halts Russian oil buys.
  • National Economic Council Director Kevin Hassett said negotiations with India remain complicated and cautioned, "If the Indians don't budge, I don't think President Trump will."
  • India called the tariffs unjustified and defended its energy purchases as vital for 1.4 billion people, while Russia questioned summit readiness and Ukraine reported continued fighting in the east.