Trump’s Trade Move Against India Raises Stakes Over Russian Energy Imports. (Image Source: Stocks)
On Wednesday, the Trump administration took a dramatic step to charge India for its ongoing purchases of Russian crude oil, signing an executive order that imposes an additional 25% tariff on Indian goods exported to the U.S., doubling the existing 25% tariff to a hefty 50% total. The order will take effect 21 days after it is signed and is based on authority granted by the International Emergency Economic Powers Act (IEEPA) and the Trade Act of 1974.
This measure marks a sharp rise in trade tensions, focusing on India's energy choices and showing U.S. frustration at New Delhi's unwillingness to sever ties with Moscow in the face of Western sanctions.
The Indian government swiftly condemned the move, labeling it “unjustified and unreasonable.” New Delhi cites obvious double standards, claiming that several Western nations, including the United States and members of the European Union, continue to conduct business with Russia in a variety of ways despite facing harsh tariffs for importing Russian oil.
India's Ministry of External Affairs drew attention to these inconsistencies in international trade relations, claiming that the tariffs unfairly single out India in spite of the complexity of the world energy market, according to Reuters.
While India has not officially directed refiners to halt Russian crude imports, state-owned companies have reportedly paused spot-market purchases in response to the tariff threat. The government and policymakers are already concerned about internal inflation pressures, and analysts warn that shifting away from cheap Russian crude could increase India's import bill by $9 to $11 billion.
According to sources, this shift could raise fuel prices and strain economic recovery efforts, forcing India to scramble for alternative suppliers amid a volatile global energy market.
Also Read: India Contributing More to Global Growth Than US, Says RBI Chief Amid Trump Row
Despite sanctions and global pressure, Russia continues to find buyers for its energy exports. A complex picture is painted by the most recent data from the Centre for Research on Energy and Clean Air (CREA):
India’s significant share of Russian crude oil imports has made it a focal point of geopolitical tension. The country benefits from discounted rates but faces diplomatic and economic backlash, especially from the U.S.
Also Read: Trump’s Executive Order Hits India With 50% Tariff, Cites Russian Oil Imports
The tariff increase reflects broader geopolitical friction: the U.S. seeks to isolate Russia economically, but key countries like India prioritize energy security and affordability. Despite opposition from the West, India has moved closer to Moscow due to its expanding energy needs and strategic independence.
European nations, meanwhile, show a complex picture, maintaining sizable imports of Russian LNG and pipeline gas despite public commitments to reduce dependence. This underscores the difficulty of quickly pivoting away from entrenched energy relationships.
