US President Donald Trump recently announced his intention to substantially raise tariffs on Indian goods, accusing India of buying large quantities of Russian oil and selling it on the global market for significant profits despite the ongoing war in Ukraine.

Trump claimed that India disregards the human toll caused by the Russian military actions and indicated imposing a 25% tariff on Indian imports as well as additional penalties related to Russian oil purchases.

However, various authoritative sources and statements from India strongly contest Trump's assertions, describing his decision as unjustified, unreasonable, and ignoring market realities.

The Global Trade Research Initiative (GTRI) and Indian government sources have clarified the situation as follows:

India is a net importer of crude oil and does not export crude oil itself. The country's export of refined petroleum products such as diesel and jet fuel, potentially sourced from Russian crude after processing in Indian refineries, is standard practice among many energy-importing nations.

India thus does not profit from selling Russian crude directly, contradicting Trump's claim.

The increase in Indian purchases of Russian oil was driven by the goal to stabilise global oil markets after Western sanctions disrupted traditional supply routes. India's procurement of Russian crude was a transparent economic decision guided by commercial considerations like price, supply stability, and market regulations, not a political endorsement of Russia.

China, not India, is the largest buyer of Russian oil, with $62.6 billion imported in 2024 compared to India's $52.7 billion. Trump's targeting of India, while apparently not criticising China, is seen as inconsistent and possibly motivated by geopolitical considerations.

Indian oil refiners operate independently and may cease imports of Russian oil if risks from secondary sanctions or loss of access to export markets outweigh the cost benefits. For example, exports of refined products to the EU have stopped due to the EU's ban on products refined from Russian crude, reflecting industry adjustments without government directives.

India maintains that its energy policies are driven by national interest and market realities. The Ministry of External Affairs stressed that India's ties with countries are based on their own merit and not influenced by third-country perspectives. Indian officials have condemned the tariff threat as unfair and vowed to protect economic interests.

Indian imports of Russian oil actually decreased by 9.8% in May 2025 compared to the previous year, indicating a trend of adjustment in response to international market conditions and sanctions.

There is concern that if India were forced to stop importing Russian oil, it could trigger a global crude price spike to as much as $200 per barrel, severely impacting global consumers.

Expert analysis and official Indian responses argue that Trump's decision to raise tariffs on India over alleged profiteering from Russian oil is factually inaccurate and disregards the complex market and geopolitical factors at play.

India's engagement in Russian oil trade is portrayed as a measured economic strategy amid disrupted global energy supply chains, not a political or moral failing.

Meanwhile, larger Russian oil purchases by China go unaddressed in Trump's tariff rhetoric, raising questions about consistency and fairness in US policy.

The tariff threat risks undermining key US-India strategic partnership efforts during a volatile period in Indo-Pacific geopolitics.

Based On ANI Report