India Slams Trump Tariffs as ‘Unjustified’ Amid Rising Tensions Over Russian Oil Trade

With U.S. threats mounting, New Delhi defends energy imports and accuses West of hypocrisy

A new wave of economic friction is rattling the already fragile India–U.S. relationship. This time, it’s not about software, visas, or trade deficits. It’s about oil. Russian oil.

And a 25% tariff that could hit Indian exporters starting August 7.

In his sharpest statement yet, President Donald Trump accused India of “profiting” off the Russia-Ukraine war by buying discounted Russian crude and reselling it globally for “big profits.” He warned of “substantially” increasing tariffs on Indian goods, triggering a furious reaction from New Delhi.

India Fires Back: ‘Unreasonable and Unjustified’

Late Monday evening, India’s Ministry of External Affairs issued a blunt statement slamming Washington’s rhetoric. The move, officials said, was not only unfair but risked harming decades of bilateral cooperation.

“India will take all necessary measures to protect its national interests and economic security,” the MEA said. “We find the statements and proposed actions by the U.S. unjustified and unreasonable.”

It didn’t stop there.

In a rare direct jab at Washington, India pointed out that both the U.S. and EU continue to import Russian commodities — particularly for use in nuclear power and automobile sectors — while trying to restrict others from doing the same.

That’s the first time India has officially called out the West for what it sees as a double standard.

What Trump Said — And Why It Hit a Nerve

Speaking on his social media platform, Truth Social, Trump didn’t mince words.

“India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits,” he posted. “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”

He also vowed to raise tariffs on Indian goods “substantially,” without specifying the full list of items or sectors.

That post sent shockwaves through India’s foreign policy circles, especially since the U.S. has not yet re-entered any formal trade agreement with India under Trump’s second term.

And with talks already stalled over market access for U.S. agricultural products, things just got messier.

A Trade Deal Still Stuck in Limbo

Trump’s return to power hasn’t thawed the ice between Washington and New Delhi on trade. While defense ties and regional security cooperation remain intact, trade negotiations are stuck.

Key sticking points:

• Washington wants broader market access for U.S. agricultural products, including dairy and genetically modified crops

• India seeks restoration of its Generalized System of Preferences (GSP) status, which Trump revoked in 2019

• Disagreements over digital data rules, tech tariffs, and pharmaceutical regulations continue to loom

Despite multiple rounds of dialogue, both sides are still dancing around a deal — and this latest flare-up won’t help.

Russian Oil: The Billion-Dollar Question

At the heart of the spat is oil — more specifically, the discounted crude India’s been buying from Russia since 2022.

Indian officials argue they stepped up purchases only after European countries rerouted their own energy contracts post-invasion. Essentially, Europe’s pivot left India scrambling — and Russia was offering deep discounts.

And yes, Indian refiners have exported some of the processed fuel abroad. That’s legal under global trade norms. But Trump’s framing — that India is “getting rich off war” — has raised eyebrows in New Delhi.

According to official Indian data:

• Russian oil made up 36% of India’s crude imports in 2024, up from just 2% before the Ukraine conflict

• Over $50 billion in refined fuels were exported by India globally last year — including to the U.S. and Europe

• Indian government insists all transactions comply with international law and sanctions exemptions

One Indian official said privately: “They want us to suffer for buying oil, while they quietly keep buying uranium and steel from the same country.”

Jaishankar’s Quiet Yet Sharp Rebuke

Earlier Monday, without naming Trump directly, External Affairs Minister S. Jaishankar told a policy forum in New Delhi: “We seek a fair and balanced global order. Not one dominated by a few nations and their selective morality.”

His comment was subtle, but the message was clear — India won’t bow to selective pressure, especially when its own energy security is at stake.

India’s fuel bill remains a major driver of inflation and budget volatility. Cutting off affordable oil sources would hurt not just government finances but household costs too.

Where the Tariffs Might Land

Although the U.S. hasn’t yet released a list of targeted items, Indian exporters are bracing for the worst.

Likely sectors in Trump’s crosshairs:

• Textiles and apparel (a $9.5 billion industry in India–U.S. trade)

• Steel and aluminum

• Pharmaceuticals

• Auto parts and electronics

Here’s a breakdown of current export values to the U.S. by key sectors:

Any tariff hike could hurt Indian manufacturers who are already dealing with high freight costs and inflation.

What’s at Stake Politically

This dispute is unfolding in a politically sensitive year for both nations. India’s coalition government is still stabilizing after a bruising election in May. Trump is gearing up for what could be a bitter November campaign in the U.S.

And in both countries, there’s little appetite for being seen as the one who blinked first.

With China becoming a larger concern in both capitals, some diplomats worry this dispute could damage broader cooperation — on defense, tech, and the Indo-Pacific region.

But for now, the heat is rising.

India says it’s open to dialogue, but not at the cost of being singled out unfairly. “We will do what’s right for our people,” said one senior Indian official. “No matter who is in the White House.”