India has strongly defended its economic engagement with Russia, accusing the United States and the European Union of hypocrisy over their own trade relationships with Moscow. This response follows U.S. President Donald Trump’s recent threat to impose “substantially higher” tariffs on Indian exports.
Background
In a social media post, Trump criticized India’s decision to purchase discounted Russian oil, alleging that New Delhi had profited by reselling it on the open market. He also floated the idea of a 25% tariff on Indian exports, along with unspecified penalties for India’s energy trade with Russia.
Reacting to the accusations, India’s external affairs ministry called the targeting “unjustified” and highlighted the West’s ongoing trade with Russia.
India’s Defense
India clarified its position by stating that its decision to import Russian oil was driven by necessity. According to officials, the country began sourcing petroleum from Russia after Western nations redirected traditional oil supplies to Europe due to the Russia-Ukraine war.
The ministry emphasized that this move was crucial to ensuring affordable energy for Indian consumers. India also pointed out that the U.S. itself encouraged the country to import Russian oil for the sake of global market stability.
Calling Out Western Trade Practices
India questioned the EU and U.S.’ moral authority, citing their own active trade with Russia. The EU’s bilateral trade with Russia totaled €67.5 billion ($78.1 billion) in 2024, along with €17.2 billion in services trade in 2023.
In contrast, India reported bilateral trade with Russia reaching $68.7 billion for the fiscal year ending March 2025—significantly higher than its pre-pandemic level of $10.1 billion.
Additionally, India noted that the U.S. continues to import critical materials like uranium hexafluoride, palladium, and fertilizers from Russia. The U.S.’ 2024 trade with Russia amounted to $5.2 billion, down from $36 billion in 2021.
“The targeting of India is unjustified. Like any major economy, India will take all necessary measures to safeguard its national interests,” the ministry stated.
Impact of Russia-India Oil Trade
Russia has become India’s largest oil supplier since the Ukraine war began, accounting for 39% of India’s total crude imports in 2023. Imports surged from less than 100,000 barrels per day before the war to over 1.8 million barrels per day in 2023, according to the U.S. Energy Information Administration.
This shift, experts argue, played a key role in stabilizing global energy prices.
Trump’s Tariff Threat and India’s Response
Trump’s tariff threats have drawn mixed reactions in India. Subash Garg, a former Indian finance secretary, suggested that India should let the tariffs take effect and allow American consumers to bear the additional costs.
Despite the rising tensions, analysts remain skeptical about a near-term resolution. Rachel Ziemba, a senior fellow at the Center for a New American Security, highlighted that the U.S. itself designed the price cap system that facilitated India’s imports of Russian oil.
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