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International trade

India Hits Back at US Over Tariff Threats on Russian Oil Imports

Strategic Insights

— 1 min read

India's Ministry of External Affairs (MEA) has strongly refuted the US administration's tariff threats, calling them "unjustified and unreasonable" over the country's import of Russian oil. This move comes after repeated warnings from the US President, Donald Trump, who has accused India of ignoring the lives lost in Ukraine and imposing significant trade barriers.

India has long been a major buyer of Russian oil, importing approximately 2 million barrels per day, which accounts for nearly 2% of global supply. The MEA countered the US claims by pointing out that the European Union has a significantly larger trade relationship with Russia, with bilateral trade in goods worth Euro 67.5 billion in 2024 and an estimated Euro 17.2 billion in services in 2023.

Key Takeaways:

  • India's Ministry of External Affairs (MEA) has rejected US tariff threats over Russian oil imports, calling them "unjustified and unreasonable".
  • The MEA cited EU's significant trade relationship with Russia, including bilateral trade of Euro 67.5 billion in goods and Euro 17.2 billion in services in 2023.
  • India has been importing approximately 2 million barrels per day of Russian oil, accounting for nearly 2% of global supply.
  • The EU's imports of LNG in 2024 reached a record 16.5mn tonnes, surpassing the previous record of 15.21mn tonnes in 2022.
  • The EU's trade with Russia includes not only energy but also fertilizers, mining products, chemicals, iron and steel, and machinery and transport equipment.
  • India was previously reliant on Middle Eastern oil imports but switched to Russian oil after Russia's discounted prices following the Ukraine invasion in February 2022.
  • US President Donald Trump has threatened India with a 25% tariff and a penalty on imported goods starting from a yet-to-be-announced date.
  • Trump accused India of having "the most strenuous and obnoxious non-monetary Trade Barriers of any country" in a recent statement.

Statistics:

  • India imports approximately 2 million barrels per day of Russian oil.
  • EU's bilateral trade with Russia in goods was worth Euro 67.5 billion in 2024.
  • EU's trade in services with Russia was estimated at Euro 17.2 billion in 2023.
  • EU's imports of LNG in 2024 reached a record 16.5mn tonnes.
  • EU's trade with Russia includes not just energy but also fertilizers, mining products, chemicals, iron and steel, and machinery and transport equipment.

Sources:

  • India Blooms
  • United States Government ( Donald Trump's statement )

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