Posted originally on Aug 6, 2025 by Martin Armstrong |  

Economic warfare is dismantling free trade and turning friends into foes. This has nothing to do with trade tariffs, as the issue is the tariffs we are placing on nations for the sole purpose of political policy. The US is threatening India with sanctions if it continues to purchase Russian oil, and the Kremlin is using that to its advantage.

“We believe that sovereign countries should have, and have the right to choose their own trade partners, partners in trade and economic cooperation. And to choose those trade and economic cooperation regimes that are in the interests of a particular country,” Kremlin Press Secretary Dmitry Peskov stated.

Around 35% to 40% of India’s crude oil now comes from Russia as the nation began drastically increasing its purchases when the Ukraine-Russia-NATO war began, since Russian crude was cheaper than what the Middle Eastern nations were charging. India has heavily profited from this deal, but the US would have done the exact same thing if it were in India’s position. The Trump Administration believes free trade is only free and fair if it directly benefits the United States.

“The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” India’s Ministry of External Affairs (MEA) commented. “It is noteworthy that those nations criticizing India are themselves engaging in trade with Russia. In contrast to our situation, their trade does not constitute a critical national necessity.” The MEA also noted that the US and its allies reached out to India to purchase oil amid shortages that they themselves created. There is a clear double standard here that is making America look a bit foolish.

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA,” Donald Trump stated online, openly stating that these new tariffs are intended to shape India’s trade policy. Furthermore, Trump said India was “not a good trade partner” and dismissed the billions in trade between the two.

This arrogant stance is pushing India out of neutrality and into the arms of the Kremlin. There is nothing diplomatic about calling your trade partner worthless on the public stage and then bullying them with sanctions into changing their foreign policy. Trump has also been threatening economic warfare against nations that oppose Israel. I do not know who is currently surrounding Trump and permitting him to carry out these disastrous policies. Let us not forget that India is also a nuclear superpower—we do not want to turn India into an enemy nation.