comScore Tariff War Escalates: India Hits Back, Slams US Hypocrisy On Trade With Moscow

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Vibes Of India
Vibes Of India

Tariff War Escalates: India Hits Back, Slams US Hypocrisy On Trade With Moscow

| Updated: August 5, 2025 12:25

The specter of a 25 per cent tariff loomed large once again over India-US trade relations after former US President Donald Trump first threatened a substantial hike in duties on Indian goods. His outburst, triggered by India’s continued purchase of Russian oil amid the Ukraine conflict, marked a dramatic shift from earlier US positions—when Washington had, in fact, encouraged India’s engagement with Moscow to stabilise global energy markets during the early days of the war.

This could be gauged by the statement of US Ambassador to India, Eric Garcetti, who, at a recent Council on Foreign Relations event, said that India had bought Russian oil because the United States had wanted someone to purchase it at a price cap, which was not a violation. He explained that this had been the design of the policy, as the intention was to prevent the commodity’s price from rising — and India had fulfilled that objective.

Now, several hours after US President Donald Trump officially raised tariffs to 25 per cent against India for buying Russian oil amid the Ukraine war, India hit back at Washington and the European Union, questioning their duplicity in their stance on crude imports.

Slamming the criticism from the US and the EU over its oil imports from Russia, India said its targeting was “unjustified and unreasonable” in light of continued and substantial Western trade with Moscow.

The Ministry of External Affairs (MEA), responding to US President Donald Trump’s threat to substantially hike tariffs on India for buying and selling of Russian oil, said India’s decision to purchase discounted Russian oil followed the outbreak of the Ukraine conflict, which led traditional energy suppliers to divert their exports towards Europe. At the time, the US had even encouraged India’s purchases as a way to stabilise global energy markets.

The MEA emphasised that India’s energy imports from Russia are essential to ensuring affordable and predictable fuel prices for Indian consumers.

“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation. 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,” the ministry said in a statement.

Further highlighting the disparity, the ministry cited bilateral trade between the European Union and Russia in 2024, which were “significantly more than India’s total trade with Russia that year or subsequently.”

“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 statement said.

Earlier, Trump had threatened India to substantially raise tariffs on India for buying ‘massive amounts’ of oil from Russia amid its war with Ukraine. “…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,” he said on Truth Social.

The MEA, in a clear-worded response, said that India will continue to act in accordance with its national interest and economic security, adding that attempts to single out India ignore the broader context of global trade realities.

India insists that its foreign policy decisions, especially energy partnerships, are based on pragmatic considerations, particularly in light of volatile global markets.

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