In a major trade escalation, India has issued a firm rebuttal to U.S. President Donald Trump’s latest tariff threat, calling it “unjustified and unreasonable.” Trump had vowed to “substantially” raise tariffs on Indian goods over New Delhi’s continued import of discounted Russian oil.

In a strongly worded statement, the Indian government reminded Washington that it was the U.S. itself that had initially encouraged such imports to stabilise the global energy market following the Ukraine crisis. It also called out the “hypocrisy” of the European Union and the United States for targeting Indian refiners while continuing substantial trade with Russia themselves.

India’s Ministry of External Affairs highlighted that the EU had a bilateral trade of €67.5 billion in goods and €17.2 billion in services with Russia in 2023–24. European imports of Russian LNG hit a record 16.5 million tonnes in 2024, surpassing previous highs. The EU’s trade includes not only energy but also fertilisers, chemicals, machinery, and steel.

The U.S. was also called out for continuing imports of Russian uranium hexafluoride, palladium, fertilisers, and chemicals—resources critical for its nuclear and electric vehicle industries.

India stressed that its crude purchases from Russia are dictated by market realities and national interest. With traditional suppliers rerouting oil to Europe after 2022, India turned to Russia for reliable and affordable energy. “Like any major economy, India will take all necessary steps to safeguard its economic security,” the statement read.

Trump has already announced a 25% tariff on Indian goods effective August 7 and has threatened further hikes unless Russia agrees to a peace deal with Ukraine.

India’s message is clear: it will not be dictated to, especially by nations whose own trade actions belie their rhetoric.

In a major trade escalation, India has issued a firm rebuttal to U.S. President Donald Trump’s latest tariff threat, calling it “unjustified and unreasonable.” Trump had vowed to “substantially” raise tariffs on Indian goods over New Delhi’s continued import of discounted Russian oil.

In a strongly worded statement, the Indian government reminded Washington that it was the U.S. itself that had initially encouraged such imports to stabilise the global energy market following the Ukraine crisis. It also called out the “hypocrisy” of the European Union and the United States for targeting Indian refiners while continuing substantial trade with Russia themselves.

India’s Ministry of External Affairs highlighted that the EU had a bilateral trade of €67.5 billion in goods and €17.2 billion in services with Russia in 2023–24. European imports of Russian LNG hit a record 16.5 million tonnes in 2024, surpassing previous highs. The EU’s trade includes not only energy but also fertilisers, chemicals, machinery, and steel.

The U.S. was also called out for continuing imports of Russian uranium hexafluoride, palladium, fertilisers, and chemicals—resources critical for its nuclear and electric vehicle industries.

India stressed that its crude purchases from Russia are dictated by market realities and national interest. With traditional suppliers rerouting oil to Europe after 2022, India turned to Russia for reliable and affordable energy. “Like any major economy, India will take all necessary steps to safeguard its economic security,” the statement read.

Trump has already announced a 25% tariff on Indian goods effective August 7 and has threatened further hikes unless Russia agrees to a peace deal with Ukraine.

India’s message is clear: it will not be dictated to, especially by nations whose own trade actions belie their rhetoric.