US president Donald Trump has escalated pressure on India by threatening to substantially increase tariffs on Indian imports, primarily criticizing India’s continued purchase of Russian oil amidst the Russia-Ukraine war.
On July 30, Trump announced a 25 per cent tariff on Indian goods, which is higher than tariffs imposed on India’s Asian competitors.
He accused India of “buying massive amounts of Russian oil” and profiting by selling it on the global market despite the ongoing conflict in Ukraine, asserting that higher tariffs would follow unless India changes course.
US encouragement then criticism now
The sharp rhetoric from Trump stands in contrast to earlier actions during his first term, when the US, backed by senior advisers, encouraged global purchases of Russian oil to stabilize international markets and avoid price shocks.
Former US Ambassador to India Eric Garcetti and India’s External Affairs Minister S Jaishankar have highlighted Western double standards, pointing out how Europe and the US themselves continue significant trade with Russia, including energy and critical raw materials.
The Ministry of External Affairs (MEA) in New Delhi insists that India complies with international laws and only imports Russian oil due to its availability and affordability under a $60 per barrel price cap. This pragmatic approach aims to keep energy prices stable and protect Indian consumers, especially as other suppliers diverted oil supplies toward Europe post-conflict.
India’s energy mix and strategic autonomy
India sources crude oil from roughly 41 countries, with Russia constituting about 30-35% of total imports, followed by Iraq (15%) and countries like Saudi Arabia, UAE, the US, and Kuwait.
The shift to Russian oil was economically motivated, drawn by substantial discounts and reliable supply, not ideology. Indian officials have asserted that the country will not yield to external pressure, emphasizing the sovereign right to secure energy for its development and growth.
Trade negotiations struggle amid tariff standoff
The tariff imposition coincides with stalled US-India trade negotiations, primarily due to disagreements on market access for American agricultural products and India’s Russian oil imports. Trump’s tariff threats have rattled sectors dependent on exports such as apparel, footwear, pharmaceuticals, and electronics, raising concerns over job losses and weakening Indian exporters’ competitiveness globally.
India’s position remains firm: strategic autonomy—especially in energy policy—is paramount. Officials stress that India’s foreign policy decisions are calibrated based on national interest and global economic circumstances, rejecting attempts to link trade agreements or tariffs directly with Russia-related dynamics.
Russia and US-India dispute
Russia has entered the dispute, affirming its strong bilateral trade relations with India and condemning the tariff threats as coercive attempts to disrupt sovereign trade partnerships. Kremlin spokesperson Dmitry Peskov criticized US actions as illegitimate, reaffirming that countries have the right to choose their economic partners.
The global geopolitical and economic context
The US and European powers aim to isolate Russia to curtail funding for the Ukraine conflict by pressuring key oil buyers. However, India’s large population and developmental needs complicate this effort. Cutting off Russian oil supplies abruptly would likely cause global price surges, disproportionately affecting developing economies like India. Thus, India advocates for a fair global order and balanced diplomacy, a message echoed at multiple international forums.
President Trump’s aggressive tariff posture toward India symbolizes a fragile and complex intersection of geopolitics, trade, and energy security. While the US seeks to accelerate pressure on Moscow, India’s stance is rooted in pragmatic energy security and sovereign decision-making.
The ongoing tit-for-tat risks widening trade rifts and destabilizing bilateral relations at a time when cooperation on other global challenges remains crucial.
