Less than every week after he introduced a 25% tariff on imports from India “plus a penalty”, U.S. President Donald Trump on Monday (August 4, 2025) as soon as once more raised the problem of India shopping for oil from Russia and making the most of it. He said that he can be “substantially” elevating the tariff “paid by India to the USA”.
It is vital to notice that such tariffs are paid by importers within the U.S., slightly than the nation on which the tariffs are levied.
The Indian authorities hit again at Mr. Trump’s statements and additionally criticism from European nations on India’s commerce with Russia, saying that such “targeting of India” was “unjustified and unreasonable”. In an announcement, the federal government identified that not solely did the U.S. encourage such commerce beforehand, each the European Union and the U.S. proceed to actively commerce with Russia in extra of the quantity that India does.
Trump’s remarks
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,” Mr. Trump posted on the social community Truth Social. “They don’t care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA. [sic]”
The U.S. President had on July 31 signed an government order that authorised a 25% tariff on imports from India. A day earlier, he had posted on Truth Social that he can be imposing this tariff plus a penalty “because their [India’s] tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country”.
Apart from this, he additionally cited India’s vitality and navy gear purchases from Russia as an irritant.
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Following this announcement, Union Minister of Commerce and Industry Piyush Goyal knowledgeable each Houses of Parliament that the federal government was “studying the implications” of Mr. Trump’s announcement, consulting all of the related home stakeholders, and would “take all steps necessary to secure our national interest”.
India’s response
On Monday (August 4, 2025), the Ministry of External Affairs responded to the most recent assertion by Mr. Trump, saying that the U.S. had beforehand “actively encouraged” the import of Russian oil.
“India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict,” the official spokesperson of the Ministry of External Affairs stated. “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 markets stability.”
The MEA’s assertion added that India’s oil imports from Russia are supposed to guarantee “predictable and affordable energy costs” for the Indian shopper.
“They are a necessity compelled by the global market situation,” it added. “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.”
Western commerce with Russia
The MEA went on to hit again by saying that the European Union in 2024 had a bilateral commerce of Euro 67.5 billion in items with Russia, along with a commerce in companies estimated at €17.2 billion in 2023.
“This is significantly more than India’s total trade with Russia that year or subsequently,” the MEA added. “European imports of LNG in 2024, in fact, reached a record 16.5mn tonnes, surpassing the last record of 15.21mn tonnes in 2022.”
Europe’s commerce with Russia contains not simply vitality, but additionally fertilisers, mining merchandise, chemical compounds, iron and metal and equipment and transport gear, the assertion stated.
“Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers as well as chemicals,” the MEA famous.
“In this background, the targeting of India is unjustified and unreasonable,” it added. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.”
The 25% tariff locations India at a relative drawback in comparison with a few of its opponents similar to Vietnam, Indonesia, Mexico, and the Philippines. So far, Mr. Trump’s new tariffs are anticipated to take impact from August 7.
