'Unjustified and unreasonable': India counters Trump's tariff threat over Russian oil import

Hitting back at the White House, India's Ministry of External Affairs (MEA) cleared it will take all necessary steps to safeguard its "national interests and economic security".

India accused the US and European Union jointly for its alleged double standards citing how both Washington and EU are engaged in trade and imports from Moscow.

What did MEA say? Full text here

"India has been targeted by the United States and the European Union for importing oil from Russia after the commencement of the Ukraine conflict. 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.

"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 criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion."

"The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023. This is significantly more than India’s total trade with Russia that year or subsequently. 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-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment."

"Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals.

"In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security."

India counters US after Trump's renewed threat

The MEA sharply reacted after Trump threatened India yet again over its purchase of Russian oil stating that the South Asian country doesn't care for the lives lost in Ukraine.

"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. They don't care how many people in Ukraine are being killed by the Russian War Machine," Trump said in a post on Truth Social.

"Because of this, I will be substantially raising the Tariff paid by India to the USA," he said without specifying what tariff level he had in mind.

His post comes days after his announcement that a 25 percent tariff and a penalty would be imposed on goods imported from India.

The President had posted on Truth Social, "Remember, while India is our friend, we have, over the years, done relatively little business with them because their 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.

"Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!"

Background

India, the world's third-largest crude importer after China and the US, historically bought most of its oil from the Middle East.

However, this changed following Russia's decision to sell its oil at discounted rates after the West shunned it as punishment for its full-scale invasion of Ukraine in February 2022.

India purchases up to 2 million barrels per day of oil, accounting for 2 percent of global supply.

Last week, Trump declared that the US has a massive trade deficit with India, accusing it of having the "most strenuous and obnoxious non-monetary Trade Barriers of any country".

"While India is our friend, we have, over the years, done relatively little business with them because their 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," he said.