India Pushes Back on Trump’s Tariff Threats Over Russian Oil — Calls Out U.S. and EU “Double Standards”
NEW DELHI — A diplomatic clash is intensifying between India and the United States after President Donald Trump threatened higher tariffs on Indian goods over New Delhi’s continued purchases of Russian oil.
In a sharply worded statement, India’s Ministry of External Affairs called the targeting of its energy trade “unjustified and unreasonable”, accusing the U.S. and EU of double standards in their own dealings with Moscow.
The controversy erupted after Trump posted on Truth Social and later confirmed to reporters that the U.S. is “considering a tariff hike on Indian goods” to punish what he called India’s “continued support of Putin’s energy war chest.”
🇮🇳 India’s Response: Hypocrisy
India’s Ministry of External Affairs fired back, defending its Russian crude imports as an economic necessity to ensure affordable and predictable energy for its 1.4 billion people. The statement highlights several key points:
- The U.S. once encouraged India’s Russian imports to stabilize global markets after the Ukraine conflict disrupted supplies.
- Europe remains deeply engaged in Russian trade, including €67.5 billion in goods and €17.2 billion in services with Russia in 2024.
- European LNG imports hit a record 16.5 million tonnes in 2024, higher than India’s total Russian crude purchases.
- The U.S. continues to import Russian commodities like uranium for nuclear power, palladium for EV batteries, and fertilizers.
🗣 “It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion... In this background, 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" — statement from India’s Ministry of External Affairs
🛢 Why This Matters for Oil and Global Markets
- India is the world’s third-largest oil consumer, and its pivot to discounted Russian crude has been critical to keeping global oil markets balanced and Brent crude below $80 in 2023–2024.
- U.S. tariff threats could trigger a trade spat, potentially impacting billions in bilateral trade and complicating global supply chains.
- Energy geopolitics tighten as Washington attempts to isolate Russian barrels while New Delhi seeks affordable supply amid volatile OPEC+ production.
📊 Market Impact
- Brent crude hovered near $70.80 as traders digested the risk of heightened U.S.–India trade tensions and potential disruptions in energy flows.
- Analysts warn that if India reduces Russian oil intake under U.S. pressure, global prices could climb, especially with OPEC+ output curbs and Northern Hemisphere winter demand ahead.
- The US is also India's top trading partner, with bilateral trade hitting $186 billion in 2024-25.
📌 Bottom Line
Trump’s tariff threat against India adds a new layer of complexity to the post-Ukraine oil trade reshuffle.
India, now a key buyer of Russian barrels, is standing firm, framing its imports as economic survival and calling out Western energy hypocrisy.
As oil markets watch, the question is clear: Will U.S. pressure force India to pivot—or will global energy realities win?
