In an increasingly tense global climate shaped by the Russia-Ukraine War, US President Donald Trump has launched a fresh offensive, not on Moscow, but on New Delhi.
Accusing India of “massive” oil purchases from Russia and claiming New Delhi is profiting from the war, Trump on Monday said he will "substantially" raise tariffs on Indian imports to the United States.
Last week, the Trump administration slapped a 25 per cent duty on all Indian goods. The US president also announced a penalty for buying "vast majority" of Russian military equipment and crude oil, but no mention was made in the notification.
While Trump paints India as a supporter of the Russian war machine, a closer look at US trade data reveals that Washington continues to quietly do business with Moscow, even in strategic sectors. India has now pushed back forcefully, exposing the double standards.
MEA hits back: “Unjustified and unreasonable”
Shortly after Trump’s threat, India mounted a rare and sharp counterattack. In a statement issued by the Ministry of External Affairs (MEA), New Delhi rejected the criticism and exposed the continuing US and EU trade with Russia.
"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," the MEA statement read.
"India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict. The United States at that time actively encouraged such imports by India for strengthening global energy market stability," it added.
"India's imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by the global market situation. However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion," the statement read.
The MEA pointed out that Europe continues to import not only energy, but also fertilizers, mining products, iron and steel, and transport equipment from Russia. Meanwhile, the US still imports uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilizers, and chemicals.
India counters “dead economy” jibe
Last week, Trump had mocked India-Russia ties by saying the two could take their “dead economies down together,” provoking a swift retort from New Delhi.
India reminded Washington that it is the world’s fastest-growing major economy, and firmly denied Trump’s accusation of profiteering from war.
New Delhi also noted that India’s imports of discounted Russian oil were a market necessity, not a choice to support Moscow.
Before the Russia-Ukraine war began in February 2022, India bought just 0.2% of its oil from Russia. That number has since surged to around 35–40%, making India the second-largest buyer of Russian crude after China.
In July alone, Russia supplied 36% of India’s total crude oil imports.
The real picture: US–Russia trade continues
Despite Donald Trump’s tough talk, the US is still doing business with Russia, especially in areas where alternatives are limited. While total trade has declined due to sanctions, strategic imports are still coming in.
In 2024, US–Russia trade was worth $3.5 billion, down from $15 billion in 2022. That year, the US imported $3 billion worth of goods from Russia and exported $526.1 million. By May 2025, imports had already reached $2.1 billion, while exports stood at just $232 million, creating a trade deficit of $1.86 billion.
The US continues to buy key items from Russia, including enriched uranium ($596 million), palladium ($502 million), fertilizers, chemicals, wood, and machinery. These imports are crucial for national security and industrial needs.
Even the US Trade Representative admits that materials like uranium and palladium are exempt from full sanctions because there aren’t easy substitutes. So, despite Trump’s claim that “Russia and the USA do almost no business together,” the data tells a different story: trade still exists, just in a more selective form.
India–US trade: What’s at stake?
India and the US are currently negotiating a long-pending bilateral trade deal, with five rounds of talks already completed. The sixth round is set to take place in New Delhi from August 25 to 29.
Against this backdrop, Donald Trump’s new tariffs and tough rhetoric are being viewed as pressure tactics to push India into concessions.
One key sticking point: the US wants India to open its markets to American agriculture, dairy, and genetically modified (GM) foods — something India has firmly rejected to protect its small farmers.
India’s Ministry of Commerce and Industry issued a strong response: “India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective.”
“The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.”
“The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
India-US trade by the numbers
India and the US enjoy robust trade ties, with India maintaining a trade surplus.
In 2024–25, bilateral trade reached $186 billion:
India’s energy trade with Russia is based on economic pragmatism, not political endorsement. It is helping stabilise fuel prices for over 1.4 billion people. Meanwhile, the US continues business with Russia behind the curtain, even as it accuses others of propping up Putin’s war machine.
By calling out this hypocrisy, India has drawn a line, and made it clear that strategic autonomy and national interest will remain its guiding principles, not foreign pressure.
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