By declaring intentions to “substantially raise” taxes on Indian imports to the US, particularly on India’s acquisition and resale of Russian oil, US President Donald Trump heightened tensions with India.
On his social media platform Truth Social, Trump accused India of purchasing “massive amounts” of Russian oil at a discount and then reselling a sizable amount on the open market “for big profits,” all the while displaying a lack of concern for the casualties in Ukraine as a result of the ongoing Russian invasion.
This decision came after he had announced a reciprocal 25 percent duty on Indian goods, which went into effect in early August 2025, coupled with an undisclosed fine for importing Russian defense or energy supplies.
In a robust response, India referred to Trump’s threats as “unjustified and unreasonable,” highlighting its sovereign right to implement an energy policy based on market dynamics and national interest in the face of global supply disruptions brought on by the conflict between Russia and Ukraine.
The Indian government emphasized that its bilateral relations with Russia are guided by a solid and long-standing cooperation, and that Indian purchases of Russian oil started when the conventional supply routes to India were rerouted to Europe following the invasion of Ukraine. The hypocrisy of Western nations, such as the US and EU, who themselves maintain significant trade with Russia in spite of sanctions and criticisms aimed at India, was brought to light by Indian officials.
Spokesman for the Ministry of External Affairs and other government agencies emphasized that India’s energy purchase choices are made to guarantee its customers safe and reasonably priced supplies, and that trade relations with other countries should be evaluated on their own merits rather than from the viewpoint of a third party.
Prior to the conflict in Ukraine, India imported over 100,000 barrels of Russian crude oil per day; by 2023, that amount had increased to over 1 million barrels per day, making Russia India’s largest oil supplier and accounting for approximately 39% of India’s total oil imports.
Even while these imports have decreased recently—they were allegedly down almost 24% in July 2025 compared to June, with a 33.8 percent share of Russian crude by volume—Indian refiners still heavily depend on Russian oil in the face of unstable global energy markets. Additionally, Indian officials pointed out that the US had previously urged India to acquire Russian oil in order to stabilize the world’s energy markets; now, tariff threats have somewhat reversed this stance.
Trump’s tariff threats are a component of broader US pressure on nations to sever economic connections with Russia in order to make it more difficult for Moscow to fund its war in Ukraine. India has withstood this pressure, putting economic concerns, energy security, and strategic interests first.
According to analysts, India’s purchases of oil indirectly benefited customers around the world by stabilizing crude prices after Western sanctions cut off Russian supply from regular markets. There are worries that if Indian Russian oil imports are stopped, crude prices could spike above $200 per barrel, which would have a significant impact on the world’s energy markets and consumers.
Beyond the oil conflict, India-US trade relations also face obstacles in accessing agricultural markets and competitive tariff policies, particularly in light of China’s current trade talks with the US. India continues to negotiate a challenging geopolitical environment while striking a balance between its alliances with the US and Russia. It has advocated for a “fair global order” that is not controlled by a small number of nations.
Trump’s proposal to significantly increase taxes on India for importing Russian oil is a reflection of the current geopolitical tensions stemming from the conflict between Russia and Ukraine. India’s answer highlights its dedication to energy security, autonomous policymaking, and defying outside pressure while highlighting the unfair economic practices of the West with Russia.
In the midst of more extensive trade talks and the pressing global energy market volatility associated with the conflict in Ukraine, this disagreement further strains ties between the US and India.
