U.S. President Donald Trump on Tuesday issued a fresh threat to India over its continued energy dealings with Russia while simultaneously lauding a multi-billion-dollar investment pledge from European companies under a new trade deal.
Speaking during an interview with U.S. broadcaster CNBC, Trump warned that tariffs on Indian imports could be raised “very substantially over the next 24 hours” due to the country’s purchase of Russian oil.
“They’re fueling the war machine,” Trump said, referring to India’s trade relationship with Moscow amid the ongoing conflict in Ukraine. “And if they’re going to do that, then I’m not going to be happy.”
Trump disclosed that his administration had initially imposed a 25 percent tariff, but that figure could rise imminently unless India reassesses its ties with Russia.
The threat is part of a wider strategy tied to a deadline he set for Russia to agree to a ceasefire with Ukraine. The 10-day window began last Tuesday, and Trump warned that sanctions would follow against any nation continuing strong commercial ties with Moscow beyond the deadline.
While issuing warnings to India, Trump was buoyant about recent economic developments with Europe. He praised what he described as a $600 billion “gift” from European companies, which he claimed had been secured as part of his latest trade agreement with the European Union.
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“They gave us 600 billion dollars that we can invest in anything we want,” Trump said, suggesting the funds were not loans and carried no repayment obligations.
This narrative, however, contrasts with previous explanations by the European Commission, which had indicated that the $600 billion figure reflected projected investment interests by private companies over the coming years—rather than a government-guaranteed financial package.
An EU official clarified that the European Commission itself cannot offer such guarantees, stressing that the investment plans were non-binding expressions of interest from the private sector.
The broader agreement between Trump and European Commission President Ursula von der Leyen includes the imposition of a 15 percent tariff on most EU imports into the United States. This new tariff regime is scheduled to commence on August 7.
Additionally, the EU has pledged to purchase $750 billion worth of U.S. energy by the end of Trump’s term, bolstering transatlantic energy ties and fulfilling one of Trump’s long-standing goals of reducing European dependency on rival energy sources.
As Trump simultaneously dials up economic pressure on India and boosts financial engagement with Europe, the moves signal a dual-track trade strategy—punitive toward Russia-aligned partners and incentivized for cooperative allies.
