In the latest development in the trade tensions between Washington and New Delhi, a senior U.S. administration official has defended President Donald Trump’s decision to double tariffs on Indian imports, claiming India is “intentionally taking advantage” of the ongoing war in Ukraine to boost purchases of Russian crude oil. The remarks come just hours after the White House issued an executive order imposing an additional 25% tariff on Indian goods, raising the total duty to 50%.
Speaking to ANI, the U.S. official made a distinction between Indian and American dealings with Russia. “There is simply no comparison between the hundreds of billions of dollars of growing Indian imports of Russian oil and the modest U.S. imports of Russian goods, which amount to less than 1% of the value of Indian imports,” the official stated.
India Accused of “Intentionally Taking Advantage” of the Ukraine War
The unnamed official emphasised that while U.S. imports from Russia are limited and unavoidable due to a lack of alternatives, New Delhi has significantly ramped up its oil imports from Moscow since the start of the Ukraine war. “Our imports are restricted to essential commodities for which we currently lack viable alternatives, and we are actively working to develop domestic solutions,” the official said. “By contrast, India has dramatically increased its purchase of Russian crude oil, despite having access to nearly 40 other major global suppliers who could meet its energy needs.”
The official further implied that India’s actions undermine Western efforts to isolate Russia economically, suggesting that New Delhi’s trade decisions are motivated more by opportunity than necessity.
India Pushes Back Against Tariff Hike: “Unfair, Unjustified, and Unreasonable”
President Trump’s executive order, signed on Wednesday, invokes national security and foreign policy concerns to justify the increased tariff. The order claims that India’s continued oil trade with Russia poses an “unusual and extraordinary threat” to U.S. interests. The previously announced 25% tariff will take effect from August 7, 2025, while the additional 25% will apply 21 days after the announcement, covering nearly all Indian imports except for specific exempted items or shipments already in transit.
When questioned about this decision, President Trump responded by saying, “It’s only been eight hours. So let’s see what happens. You’re going to see a lot more. You’re going to see so much secondary sanctions.”
India’s Ministry of External Affairs issued a firm response to the order, calling it an “unfair, unjustified, and unreasonable” move. The ministry reiterated that India’s energy imports are based solely on market factors and to ensure energy for its 1.4 billion citizens.
“It is extremely unfortunate that the U.S. has chosen to penalize India for actions that many other countries also pursue in their own national interest,” the Ministry of External Affairs said in its statement. “We have consistently communicated our position, and we will take all actions necessary to protect our national interests.”
This shift in international relations comes at a time when India is seeking to balance its traditional ties with Russia while maintaining strategic cooperation with the United States, particularly in the Indo-Pacific region. As Washington signals broader enforcement of secondary sanctions along with back-and-forth diplomatic communications, the future of India-U.S. trade is yet to be seen.
