Amar Dattani
New Delhi, August 5, 2025 – India has issued a sharp rebuttal to US threats of imposing steep tariffs on Indian goods due to its continued purchase of Russian oil. The foreign ministry emphasized that India’s imports are driven by necessity amid global market dynamics, while pointing out that critics, including the US and the European Union, are themselves engaged in substantial trade with Russia.
In a detailed statement, the ministry highlighted the hypocrisy of nations criticizing India’s energy imports while maintaining their own trade ties with Russia. “India’s imports are a necessity compelled by the global market situation,” the statement read, noting that countries like the US and EU are “indulging in trade with Russia” despite lacking the same economic compulsions as India.
The ministry provided specific figures to underscore its point. In 2024, the European Union recorded €67.5 billion in goods trade with Russia, alongside €17.2 billion in services trade in 2023. Notably, EU imports of Russian LNG hit a record 16.5 million tonnes in 2024, surpassing the previous high of 15.21 million tonnes in 2022. The trade spans not only energy but also fertilizers, chemicals, mining products, iron, steel, and machinery.
The statement also called out the United States for importing critical materials from Russia, including uranium hexafluoride for its nuclear industry, palladium for electric vehicle production, fertilizers, and chemicals. India justified its shift to Russian crude, explaining that traditional Middle Eastern supplies were redirected to Europe following the Ukraine conflict’s outbreak in February 2022. At the time, the US encouraged India’s imports to stabilize global energy markets.
“India’s actions were in response to disruptions in traditional supply chains,” the ministry stated, labeling the US and EU’s criticism as “unjustified and unreasonable.” It reaffirmed India’s commitment to safeguarding its national interests and economic security, asserting that, like any major economy, it would take necessary measures to ensure stability.
The response comes in the wake of US President Donald Trump’s threat to “substantially” increase tariffs on Indian goods, announced via Truth Social on August 4, 2025. Trump has proposed tariffs as high as 100% on countries purchasing Russian oil unless Russia negotiates peace with Ukraine by August 7-9. A 25% import duty on Indian goods entering the US is already set to take effect on August 7.
India’s pivot to Russian oil began after the West imposed sanctions on Russia following its invasion of Ukraine, leading Moscow to offer discounted crude. Historically reliant on Middle Eastern oil, India capitalized on these lower prices to meet its energy needs.
