India Condemns Trump's Threat to Raise Tariffs as Tensions Escalate Over Russian Oil

Strategic Insights -

The India-US relationship has reached a new low as President Donald Trump threatened to significantly raise tariffs on Indian exports to the US, citing India's purchase of Russian oil as a reason. Mr. Trump accused India of profiting from discounted Russian crude while disregarding the ongoing conflict in Ukraine. India's foreign ministry swiftly responded, calling the targeting of India "unjustified and unreasonable". The escalation of rhetoric marks a significant strain on the once-warm relationship between Trump and Indian leader Narendra Modi, with growing friction over trade, energy policy, and Trump's overtures to rival Pakistan.

Key Takeaways:

  • India condemned Trump's threat to raise tariffs as "unjustified and unreasonable" and vowed to take necessary measures to safeguard its national interests and economic security.
  • The US President accused India of profiting from discounted Russian crude while disregarding the ongoing conflict in Ukraine.
  • India imported an average of 1.75 million barrels a day of Russian oil from January to June 2025, making it the largest buyer of seaborne Russian crude.
  • Indian officials argue that the pivot to Russian oil was a market-driven necessity after traditional supplies were redirected to Europe following Western sanctions.
  • Indian public sector refiners have started reducing Russian oil purchases, with imports in July falling to 1.6 million barrels per day, a 24% decline from June.
  • The US and EU continue to import Russian oil, with the EU's goods trade with Russia totaling £57.38 bn in 2024 and the US importing Russian uranium for its nuclear sector and palladium for electric vehicles.

Statistics:

  • India imported an average of 1.75 million barrels a day of Russian oil from January to June 2025.
  • Indian oil imports from Russia fell to 1.6 million barrels per day in July.
  • The US has imposed a 25% tariff on Indian imports earlier.
  • India's exports to the US totaled £68.17bn in 2024, with a trade surplus of £35.88bn.
  • China imported £49.45bn worth of Russian oil in 2024, compared to India's £39bn.

Sources:

  • https://twitter.com/MEAIndia (@MEAIndia)
  • Reuters, "India buys record amount of Russian oil in 2025, data shows", no date mentioned
  • Kpler, "Indian oil imports from Russia decline by 24% in July", no date mentioned
  • CNBC, "India helps stabilize global energy prices with Russian oil imports", no date mentioned