India has strongly countered the United States' recent imposition of additional tariffs, specifically those linked to India's continued purchase of Russian oil, deeming them "unjustified and unreasonable". This firm response comes in the wake of escalating trade tensions between the two nations, fueled by Washington's concerns over New Delhi's energy strategy and its implications for the ongoing war in Ukraine.
The Ministry of External Affairs (MEA) has defended India's position, asserting that its crude oil acquisitions from Russia are driven by "a necessity compelled by global market conditions" rather than a political endorsement of Moscow. The MEA emphasized that India, like any major economy, will take necessary measures to protect its national interests and economic security.
This rebuttal follows U.S. President Donald Trump's announcement of a 25% tariff on Indian goods, effective August 1, 2025. Trump has also threatened additional penalties related to India's energy and military acquisitions from Russia. He has accused India of "buying massive amounts of Russian Oil" and reselling it for profit, seemingly indifferent to the conflict in Ukraine.
India's perspective is that these tariffs are unwarranted, especially considering that the U.S. and European Union (EU) continue their own trade with Russia, including in the energy sector. The MEA pointed out the "double standards" in these criticisms, noting that the EU's trade with Russia in 2024 significantly surpassed India's. Specifically, EU imports of Russian LNG reached a record 16.5 million tonnes. The U.S. also continues to import certain commodities from Russia, such as uranium, palladium, and fertilizers.
India's oil imports from Russia have increased substantially since the war in Ukraine began, rising from 0.2% of total imports to over 35%. This shift occurred as traditional suppliers diverted their resources to Europe. India has maintained that these imports are essential to ensure predictable and affordable energy costs for its consumers. According to the International Energy Agency, 70% of Russian crude was exported to India in 2024.
These developments occur against the backdrop of ongoing negotiations for a bilateral trade agreement (BTA) between India and the U.S. While both countries aim to finalize the first phase of the agreement, disagreements persist regarding tariff concessions, particularly on agricultural products, dairy, and genetically modified (GM) foods. The U.S. seeks duty concessions on these items, while India is hesitant to compromise on sectors that support the livelihoods of many farmers.
Despite the trade tensions, India has signaled its intent to continue purchasing oil from Russia, emphasizing its "steady and time-tested" relationship with Moscow. Foreign ministry spokesperson Randhir Jaiswal stated that India's energy decisions are based on market availability and global conditions.
The U.S. has expressed concerns that India's continued trade with Russia is indirectly funding the war in Ukraine. Some officials have argued that India is undermining efforts to isolate Russia economically. However, India insists that its decisions are guided by national interests and its need for energy security.
The current situation highlights the complex interplay of economic policy, geopolitical strategy, and energy security in international relations. India is navigating a delicate balancing act between maintaining its strategic autonomy and managing its relationships with key global partners like the U.S. and Russia. The outcome of these trade disputes and negotiations will likely have significant implications for the future of India-U.S. relations and the broader global landscape.
