India and Trump Clash Over Russian Oil and Tariffs
As tensions escalate between Washington and New Delhi, India is pushing back hard against US President Donald Trump’s latest threat of tariffs. Trump warned of a 25% tariff on Indian goods, citing India’s continued trade with Russia—especially its oil imports. In response, India has firmly labeled the move “unjustified and unreasonable,” asserting its right to safeguard national economic interests.
Trump’s Accusation and India’s Strong Rebuttal
Trump claimed India was buying large volumes of Russian oil and “reselling it for big profits,” accusing the country of ignoring the war in Ukraine. However, India dismissed the remarks, stating it began Russian oil imports only after traditional suppliers diverted shipments to Europe.
According to the Ministry of External Affairs (MEA), the US and EU are equally guilty of trading with Russia, especially for energy and industrial goods. India, it said, had simply acted to ensure energy security for its population amid a volatile global market.
Energy Imports: A Matter of Necessity, Not Choice
India maintains that its Russian oil imports are not political but practical. With global supply chains disrupted, India prioritized affordable energy. MEA spokesperson Randhir Jaiswal noted that US officials had previously encouraged Indian purchases to stabilize global prices.
India now questions why it’s being singled out, especially when Western nations continue to buy Russian materials like uranium, palladium, and fertilizers for their nuclear and EV industries.
Mounting Trade Frictions Without Resolution
While Trump ramps up rhetoric, the US and India remain far from a trade deal. Key sticking points include American demands for greater market access for agricultural goods and India’s refusal to compromise its core interests. Trump’s tariff plans, particularly on low-margin Indian exports like apparel and footwear, have sparked fears of job losses and manufacturing setbacks.
Russian Oil Imports Already in Decline
Although Trump’s warning may seem abrupt, Indian refiners had already begun reducing Russian crude imports. July 2025 saw a 24% month-on-month drop in shipments, with refiners halting new contracts amid rising geopolitical pressure.
India’s Russian oil share dropped from 44.5% to 33.8% in just one month, suggesting a shift is already underway. Trade experts now say refiners must prepare for long-term changes in sourcing strategies, factoring in both commercial realities and global diplomacy.
Jaishankar Calls for a Balanced Global Order
Speaking in New Delhi, External Affairs Minister S. Jaishankar emphasized the need for a global system that is “fair and representative—not dominated by a few.” This aligns with India’s repeated stance that decisions on energy and trade must reflect equal responsibility across nations, not pressure from select global powers.
Fuel Exports: Clarifying the Controversy
Trump’s claim that India sells imported oil “for big profits” was also challenged. India does not export crude; it exports refined fuels like petrol, diesel, and jet fuel. These are legal under global trade laws, and most don’t violate Western sanctions. India asserts that refined fuel exports from Russian crude are standard practice—and help stabilize global prices.
Double Standards in Global Trade
India also highlighted that the EU traded over €67.5 billion in goods and €17.2 billion in services with Russia in 2023—far more than India’s total Russian trade. Despite this, only India faces repeated scrutiny. Think tanks have further noted that China, not India, is Russia’s largest oil buyer, with $62.6 billion in imports last year compared to India’s $52.7 billion.
Yet Trump continues to pressure New Delhi while sparing Beijing—likely due to complex geopolitical calculations.
India Signals Readiness, Not Retreat
Despite growing threats, Indian policymakers are preparing a measured response. Deliberations are ongoing between government and energy stakeholders to assess next steps. While India appears willing to pivot if needed, it will do so on its terms—not under coercion. As MEA clearly stated, India will take “all necessary measures” to protect its economic security.
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