US President Donald Trump escalated tensions with India by announcing plans to "substantially raise" tariffs on Indian imports to the United States, specifically targeting India’s purchase and resale of Russian oil.

Trump criticised India on his social media platform Truth Social, accusing the country of buying "massive amounts" of Russian oil at discounted rates, then reselling a significant portion on the open market "for big profits," while showing indifference to casualties in Ukraine due to the ongoing Russian invasion.

This announcement followed his earlier declaration of a 25 percent reciprocal tariff on Indian goods that was implemented from early August 2025, alongside an unspecified penalty related to importing Russian oil or defence supplies.

India responded firmly, calling Trump’s threats "unjustified and unreasonable," emphasising its sovereign right to pursue an energy policy based on national interest and market dynamics amid global supply disruptions caused by the Russia-Ukraine war.

The Indian government highlighted that its stable, long-standing partnership with Russia guides its bilateral relations and that Indian purchases of Russian oil began after traditional supply routes to India were redirected to Europe post-Ukraine invasion. Indian officials pointed out the hypocrisy of Western countries, including the US and EU, which themselves continue substantial trade with Russia despite sanctions and criticisms directed at India.

The Ministry of External Affairs and other government spokespeople stressed that India’s energy procurement decisions aim at ensuring affordable and secure supplies to its consumers and that trade relations with other nations must be viewed on their own merit, not through third-party perspectives.

Data shows that India surged its imports of Russian crude oil from about 100,000 barrels per day before the Ukraine war to over 1 million barrels per day by 2023, making Russia India’s largest oil supplier and constituting around 39 percent of India’s total oil imports at one point.

Although recent months saw a reduction in these imports — reportedly down about 24 percent in July 2025 compared to June, with a 33.8 percent share of Russian crude by volume — Indian refiners continue to rely significantly on Russian oil amid volatile global energy markets. Indian officials also noted that the US had earlier encouraged India to import Russian oil to stabilise global energy markets, a position somewhat reversed now by tariff threats.

Trump’s tariff threats are part of wider US efforts to pressure countries to cut economic ties with Russia to weaken Moscow’s ability to finance its war in Ukraine. However, India has resisted this pressure, prioritising strategic interests, energy security, and economic considerations.

Analysts note that India’s oil purchases helped stabilise global crude prices after Western sanctions removed Russian supply from traditional markets, indirectly benefiting global consumers. The potential cessation of Indian Russian oil imports raises concerns of crude prices spiking to $200 per barrel, with severe implications for global energy markets and consumers worldwide.

In parallel, India-US trade relations face broader challenges beyond the oil dispute, including barriers in agricultural market access and competitive tariff policies, especially amid China’s ongoing trade negotiations with the US. India has called for a "fair global order" not dominated by a few countries and continues to navigate a complex geopolitical landscape balancing its partnerships with both the US and Russia.

Trump’s call to raise tariffs substantially on India over its Russian oil imports reflects ongoing geopolitical friction rooted in the Russia-Ukraine conflict. India's response underscores its commitment to sovereign policymaking, energy security, and rejection of external pressure while pointing to Western double standards in trade with Russia.

This dispute adds strain to India-US relations amid broader trade negotiations and the urgent global energy market volatility linked to the war in Ukraine.

Based On ANI Report