India Rejects U.S. Tariff Threat as ‘Unjustified,’ Cites Western Trade with Russia
NEW DELHI — In a sharp escalation of trade tensions, India has officially rejected the U.S. threat of higher tariffs over its continued purchase of Russian crude oil, calling the move “unjustified and unreasonable.” The Ministry of External Affairs (MEA) issued a strongly worded statement on Monday, defending India’s energy policy and accusing the U.S. and its European allies of “double standards” for their own ongoing trade with Moscow.
The diplomatic friction comes after U.S. President Donald Trump announced plans to “substantially” raise tariffs on Indian goods, accusing New Delhi of “buying massive amounts of Russian Oil and selling it on the Open Market for big profits.” The U.S. President’s comments followed an earlier executive order that imposed a 25% duty on Indian goods, with the potential for further penalties.
India’s Official Response: A Defense of National Interests
The Indian government’s response highlighted several key points:
Necessity and Global Markets
The MEA stated that India’s oil imports from Russia are “a necessity compelled by global market conditions” to ensure affordable and predictable energy supplies for its consumers. The government clarified that the shift to Russian oil was a direct result of traditional suppliers in the Middle East redirecting their exports to Europe after the Ukraine conflict began.
Hypocrisy and “Double Standards”
The statement directly pointed to the U.S. and the European Union’s own trade with Russia. It noted that the EU’s bilateral trade with Russia in 2024 was significantly higher than India’s, with European imports of Russian liquefied natural gas (LNG) reaching a record high. The MEA also noted that the U.S. continues to import critical commodities such as uranium, palladium, and fertilizers from Russia.
Sovereignty and National Interest
Underscoring a consistent theme in its foreign policy, India reiterated that its bilateral relationships “stand on their own merit and should not be seen from the prism of a third country.” The government vowed to “take all necessary measures to safeguard its national interests and economic security.”
A Shift in U.S. Stance and Analyst Views
The U.S. has previously expressed a different position on the matter. As recently as last year, top U.S. officials, including former Ambassador to India Eric Garcetti, had privately and publicly acknowledged that India’s purchases of Russian oil were an important factor in stabilizing global energy markets and keeping prices in check. The sudden shift in tone from the U.S. administration is widely seen by analysts as a strategic move to push U.S. energy exports and gain leverage in ongoing trade negotiations.
Path Forward: Continued Dialogue
Despite the heated rhetoric, both sides have indicated a willingness to continue dialogue. The next round of trade talks between the two countries is scheduled for later this month in New Delhi, where key disagreements over market access in sectors like agriculture and dairy are expected to be on the agenda.
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