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India rejects Trump's tariff threat over Russian oil as ‘unjustified'

SE24 Desk

 Update: 11:03, 6 August 2025

India rejects Trump's tariff threat over Russian oil as ‘unjustified'

India has strongly pushed back against U.S. President Donald Trump’s threat to impose steep new tariffs on Indian goods over the country's continued imports of Russian oil, calling the move "unjustified and unreasonable."

In a post on his social media platform Truth Social, Trump criticized India for buying “massive amounts” of Russian oil and reselling it for profit, despite the ongoing war in Ukraine. He accused the Indian government of being indifferent to the human cost of the conflict and announced his intention to “substantially raise” tariffs on Indian exports to the U.S.

India’s foreign ministry responded swiftly. Spokesperson Randhir Jaiswal noted that the U.S. itself had encouraged India to purchase Russian energy in 2022 to help stabilize global markets following supply disruptions caused by Russia’s invasion of Ukraine.

“India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict,” Jaiswal said in a statement. “The targeting of India is unjustified and unreasonable.”

The U.S. remains India’s largest trading partner, and tensions have flared after Trump recently imposed a 25% tariff on Indian goods. His latest comments have sparked concerns about further escalation.

While India has increased imports of discounted Russian oil, officials maintain that the purchases are driven by market considerations. Ajay Srivastava, a former Indian trade official and head of the Delhi-based Global Trade Research Initiative, told the BBC that the oil trade is transparent and not directed by the government.

“India’s refineries operate independently and choose crude suppliers based on price, reliability, and regulations,” he said. Srivastava also noted that Indian oil imports helped ease global prices when Western sanctions disrupted markets.

India also criticized the U.S. for continuing to conduct trade with Russia. Despite sanctions, the U.S. traded goods worth approximately $3.5 billion with Russia last year.

Prime Minister Narendra Modi has not ordered Indian refineries to halt Russian oil purchases, Bloomberg reported, citing unnamed sources.

Trump’s rhetoric marks a shift in tone since returning to the White House in January. While he had earlier referred to India as a "friend," he has recently voiced frustration over India’s trade practices and its energy ties with Moscow.

In the same Truth Social post, Trump labeled the Russian military the “Russian War Machine” and threatened Moscow with harsh tariffs on oil and other exports unless a ceasefire is reached in Ukraine by August 8.

U.S. envoy Steve Witkoff is scheduled to visit Russia later this week, where he is expected to meet President Vladimir Putin.