India defends Russia trade amid Trump’s tariff threats

August 6, 2025 Hot from the Oven Valli Sarvani

Tensions have escalated between India and the United States after US President Donald Trump threatened steep tariffs on Indian imports over New Delhi’s continued trade with Russia.

Trump criticised India for continuing trade with Moscow, particularly its purchase of oil and military equipment, claiming it supports Russia’s war efforts.

In response, India strongly rejected the accusation, describing it as unfair and not based on a balanced assessment of its policies.

In response, the Indian government pointed out that the US itself continues to import Russian goods, including uranium hexafluoride, palladium, fertilisers, and chemicals.

The Ministry of External Affairs emphasised that India would continue to protect its national interests and economic security.

The spat comes as Trump announced 25% tariffs on Indian imports, with the threat of further hikes if India doesn’t curb its Russian ties.

Although he initially referred to a 100% tariff on trade involving Russia, he later clarified that he hadn’t specified any percentage, but indicated that significant measures could be expected soon.

Despite US pressure, India has not issued any directive to reduce trade with Russia.

The government clarified that its energy and defence decisions are based on strategic needs, market conditions, and the global landscape, not third-party opinions.

India’s stance is rooted in practicality. With the West sanctioning Russia post its 2022 invasion of Ukraine, India increased its imports of discounted Russian oil.

According to Reuters, India purchased $50.2 billion worth of Russian oil in 2024–25 alone.

Amid growing political divisions in the US, Indian-American Republican leader Nikki Haley expressed support for India.

She highlighted the country’s strategic importance as an ally and criticised the contrasting approach of offering China a tariff pause while taking a tougher stance on India.

India insists that its relationships should not be assessed through the prism of geopolitical rivalry.

As tensions rise, India maintains its autonomy in foreign policy, balancing energy needs, strategic partnerships, and economic resilience amid a complex global environment.

Image Credit: Gaiole, CC0 1.0, via Wikimedia Commons