India now faces a growing storm in its foreign trade policy. United States President Donald Trump has confirmed a 25% tariff on Indian exports. He linked this move directly to India’s close ties with Russia—both in defense and energy. Washington also hinted at an additional penalty still under discussion.
Trump’s statements blame India’s trade surplus, BRICS membership, and Russia-centric deals, in response, New Delhi is studying the impact and pushing for dialogue but meanwhile, India’s reliance on Russia, especially for oil and arms, continues to deepen. This escalating trade standoff places India in a tight diplomatic corner.
Trump Blasts India’s Russia Ties
Trump launched a scathing attack on India’s long-standing defense and energy relationship with Russia. On Truth Social, he said India remains one of Moscow’s top military and energy clients. “They are Russia’s largest buyer of ENERGY, along with China,” he wrote, adding, “All things not good!” He stressed that India continues to buy most of its weapons from Russia, despite global calls to isolate the Kremlin. Trump declared a 25% tariff on Indian exports and hinted at an additional penalty under negotiation.
BRICS and Trade Deficit in Focus
Trump also cited India’s role in BRICS, calling it “a group of countries that are anti-The United States.” He accused the bloc of threatening the U.S. dollar. “We’re not going to let anybody attack the dollar,” Trump said. He further highlighted America’s growing trade deficit with India as justification for the tariff.
India’s Energy Pivot to Russia
India imports about 88% of its oil. Before the Ukraine war, Russian crude made up just 2% of those imports. That changed rapidly in 2022. By mid-2025, India was importing up to 2.2 million barrels per day from Russia. Russian oil now exceeds all West Asian sources combined. External Affairs Minister S Jaishankar defended this shift. He said India prioritizes energy security and uses market logic, not political loyalty, to make its decisions.
Defense Dependence on Moscow
India continues to rely heavily on Russia for its military needs. Over the past 20 years, 65% of India’s arms imports—worth over $60 billion—came from Moscow. Even today, Russian weapons systems form the backbone of India’s forces. India used the S-400 system during Operation Sindoor, proving its operational value. Although India is slowly diversifying, it still needs Russian support for maintenance and spare parts.
Trade Boom Between India and Russia
India-Russia trade has grown explosively. From $10.1 billion pre-pandemic, it hit $68.7 billion in FY 2024-25. India’s imports now include massive volumes of Russian oil, coal, and fertilizers. Russia, in turn, is importing more from India amid Western isolation. The INSTC and the proposed Chennai–Vladivostok corridor is accelerating the shift in trade routes.
A Careful Response from New Delhi
India has responded cautiously to Trump’s tariff. It says it is reviewing the impact and aims to preserve trade dialogue. In Ukraine, India has kept a neutral line. It urges peace through practical engagement but has refused to end oil purchases or defense cooperation with Russia. India continues to priorities national interests above all else.
