The United States has drawn sharp criticism from India after President Donald Trump signed an executive order slapping a steep 50 per cent tariff on Indian imports, citing India’s continued oil trade with Russia. This move has triggered a diplomatic pushback from New Delhi, which termed the decision as “unfair, unjustified and unreasonable.”
With this order, India now faces the highest import tariff imposed by the US globally, tied only with Brazil. Other countries facing elevated tariffs include Switzerland (39%), Canada and Iraq (35%), and China (30%).
India argued that the US decision reflects double standards, especially when several European nations and China continue to import Russian energy without facing similar penalties.
India defends its energy security needs
Responding to the move, India asserted that its imports from Russia are determined by market dynamics and national energy security requirements for its 1.4 billion citizens. The Indian government stated that many other countries, including US allies, continue similar transactions, yet India is being selectively targeted.
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” India said in its official statement.
India also warned that it would take all necessary steps to protect its national interests and trade rights.
China and EU escape similar scrutiny
Observers have pointed out that while India is being punished, China’s growing Russian oil imports remain untouched. In 2024, China sourced 21.5% of its crude oil from Russia—up significantly from the previous years—largely aided by smaller, independent refiners. Moreover, Russian LNG imports by China hit 8.3 million metric tonnes last year.
The European Union, despite political rhetoric against Moscow, also continues substantial trade ties with Russia. Though total EU-Russia trade volume fell from €257.5 billion in 2021 to €67.5 billion in 2024, key energy imports persisted. Russian LNG imports to the EU rose 9% in 2024, and mineral fuels remain the EU’s top Russian import category.
A Finnish think tank estimated that since Russia’s 2022 invasion of Ukraine, EU nations paid Moscow over $105 billion for gas, covering about 75% of Russia’s military expenditure in 2024.
Even Belgium increased its LNG imports from Russia by 12% in June, highlighting the ongoing energy dependence of the West on Moscow.
Trade imbalance and geopolitics
India is the largest export market for the US, purchasing $87 billion worth of goods in 2024. In contrast, India imported $41 billion from the US, creating a trade surplus of $46 billion in New Delhi’s favour. President Trump recently accused India of “undermining Western efforts” to pressure Russia and warned of tariff hikes, which have now materialized.
Meanwhile, despite its hardline rhetoric, the US itself maintained $5.2 billion in bilateral trade with Russia in 2024—mostly in chemicals—albeit much lower than the $36 billion traded in 2021.
Moscow backed India’s position, with Kremlin spokesperson Dmitry Peskov saying, “Sovereign countries have the right to choose their own trade partners.”