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India Reacts: Trump’s Tariff Threat Over Russia

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August 6, 2025
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India Reacts: Trump’s Tariff Threat Over Russia
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India has pushed back against the United States over its oil purchases from Russia after President Donald Trump issued new tariff threats linked to these transactions. The U.S. State Department did not immediately respond to a request for comment.

**Why It Matters**

The increasing tension between India and the U.S. partly reflects the failure of trade negotiations between the Trump administration and India, the world’s most populous country and its fastest-growing major economy. Growing U.S.-Pakistan relations have also strained this relationship.

However, the friction highlights a deteriorating partnership that is crucial for global security. India is seen as a potential bulwark against China for the U.S., while pursuing an independent foreign policy.

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**What To Know**

Trump issued new tariff threats on India on Monday, citing its purchases of Russian oil. This came amid increased pressure on Russia over its war in Ukraine, which has intensified despite Trump’s pledge to end it shortly after taking office.

India’s External Affairs Ministry stated that its oil imports from Russia were necessary due to global market conditions and challenged criticism from both the U.S. and the European Union.

“Unlike our case, such trade is not even a vital national compulsion,” the ministry spokesperson said, adding, “The U.S. continues to import uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilizers, and chemicals from Russia.”

**Ukraine Invasion**

New Delhi claimed that Washington encouraged India to buy Russian oil after the 2022 invasion of Ukraine to stabilize the global energy market.

India also noted that EU trade with Russia was far larger than India’s. Despite Western sanctions, Russia has continued to generate billions from energy exports.

“Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel, machinery, and transport equipment,” it said.

“The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”

In the absence of a trade deal with the U.S., India has pursued other agreements and strengthened ties with China.

**What People Are Saying**

U.S. President Donald Trump on Truth Social: “India is buying massive amounts of Russian Oil and then selling it for big profits while many in Ukraine are being killed by the Russian War Machine. I will be substantially raising the Tariff paid by India to the USA.”

India’s Ministry of External Affairs spokesperson: “India’s imports ensure predictable and affordable energy costs to Indian consumers, a necessity driven by global market conditions. The very nations criticizing us themselves trade with Russia, unlike our situation.”

**What Happens Next**

India is unlikely to be swayed by U.S. pressure and will likely continue its independent stance. The worsening relationship between the U.S. and India could benefit Russia and China as they seek to cement India in their camp.

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