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India hits back at US threat to 'substantially' hike tariffs due to oil trade with Russia, calls it unjustified

Global Times

By Global Times Published: Aug 05, 2025 10:07 AM

US President Donald Trump on Monday threatened to "substantially" raise tariffs on goods imported from India, based on that India bought and resold Russian oil. In response, India called the move unjustified and unreasonable, vowing to take all necessary measures to protect its national interests and economic security.

"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," Trump said in a post on Truth Social.

Indian goods imported into the US will be subject to a 25 percent tariff starting August 7, according to an executive order signed by Trump on July 31.

In response to Trump's new threat, India's Ministry of External Affairs said in a statement that "the targeting of India is unjustified and unreasonable," and that India's oil imports are meant to "ensure predictable and affordable energy costs" for Indian consumers. "Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," according to the statement on the ministry's website.

In the statement, India listed six points, noting that it "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."

It noted that India's imports are meant to ensure predictable and affordable energy costs to the Indian consumers. 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," said the statement.

The statement continued that "The European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia... Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment."

India also pointed out the US trade activities with Russia. Where the United States is concerned, the Indian statement said, "it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals."

In early April, Trump announced 26 percent "reciprocal tariffs" on Indian goods in addition to the 10 percent baseline tariffs, but he then paused the imposition of such tariffs.

The US goods trade deficit with India was $45.8 billion in 2024, up 5.9 percent from 2023, according to the Office of the United States Trade Representative.

Many countries have voiced strong opposition to the recent US tariff measures, per Xinhua.