In a sharp rebuke, Russia has denounced former U.S. President Donald Trump's threat to impose higher tariffs on India for its continued oil trade with Moscow, calling such actions "illegitimate" and a violation of international norms. This comes after Trump accused India of profiting from cheap Russian oil and threatened to substantially raise tariffs on Indian goods if the country did not halt such imports.
Kremlin spokesman Dmitry Peskov stated that sovereign countries have the right to choose their own trading partners, criticizing attempts to "force countries to sever trading relations" with Russia. Peskov added that Russia does not consider Trump's tariff threats against India to be "legitimate". "We hear many statements that are, in fact, threats. Attempts to force countries to stop trading with Russia. We do not consider such statements to be legitimate," Peskov told reporters.
India has also responded strongly to Trump's warning, calling the remarks "unjustified and unreasonable" and accusing the U.S. and its allies of "double standards". The Ministry of External Affairs (MEA) defended India's energy choices, asserting that its Russian crude purchases are driven by market realities and not political alignment. "India's oil imports from Russia are a necessity compelled by global market conditions," the MEA stated, rejecting the notion that trade decisions equate to political endorsement of Moscow.
The MEA further emphasized that India would take all necessary measures to safeguard its national interests and economic security. It also pointed out that the U.S. and the European Union have continued trade with Russia, including in energy and critical commodities, despite publicly opposing the conflict in Ukraine.
Trump's threats came after he signed an executive order on August 1, 2025, imposing a 25% duty on Indian goods. He then took to social media, accusing India of "buying massive amounts of Russian Oil" and "selling it on the Open Market for big profits" without regard for the conflict in Ukraine. "Because of this, I will be substantially raising the Tariff paid by India to the USA," Trump declared.
India has been the largest buyer of discounted Russian crude since the invasion of Ukraine. The country began importing oil from Russia when Europe started buying from its traditional suppliers. India has also pointed out that the U.S. and EU are continuing to trade with Russia. "It is revealing that the very nations criticizing India are themselves indulging in trade with Russia," India's Foreign Ministry said.
Amidst the tariff threats, India is preparing a Rs 20,000 crore plan to counter the impact of America's 25% tariff on Indian goods exported to the U.S. and promote homegrown brands. Prime Minister Narendra Modi has also stressed the importance of safeguarding India's interests during global economic uncertainty and promoting local products.
These developments have added strain to the U.S.-India trade relationship. In 2024, the U.S. was India's largest trading partner, with Indian exports to the U.S. totaling $87.4 billion. India recorded a nearly $46 billion trade surplus with the U.S. in the same year.
