India defies Donald Trump on Russian oil despite tariff threats

The Australian

2 days ago

India is digging in its heels and resisting pressure from the US to curb purchases of Russian oil, despite threats by President Trump to retaliate by imposing higher tariffs on India.
Last week, Trump said he would place a 25 per cent tariff on Indian imports to the US in retaliation for India's large-scale purchases of cheap Russian oil. Then, on Monday, the president said he would be 'substantially raising' tariffs on Indian goods — on top of the 25 per cent duty — because of the 'massive amounts' of Russian oil that India buys.
India has nonetheless refused to back down and has suggested that it intends to continue to buy Russian oil. Political experts said that Indian Prime Minister Narendra Modi is calculating that Trump will decide that ties between the two countries are ultimately too critical to jeopardise in a trade spat. Many Indian experts believe that Trump is spotlighting the issue to gain short-term leverage in ongoing trade negotiations with New Delhi — and that he will drop it once a deal is signed.
In recent years, the US has grudgingly accepted India's close ties with Russia, despite occasional protests, because New Delhi is considered a crucial partner in countering China's growing power.
'The view is that this is not going to affect the overall relationship, and that we don't have to kowtow,' said Sreeram Chaulia, dean at O.P. Jindal Global University's School of International Affairs in Sonipat, India.
India has taken advantage of discounted oil prices from Russia following Moscow's invasion of Ukraine. By late 2024, India accounted for over one-third of Russia's oil exports, second only to China at nearly 50 per cent, according to the Observer Research Foundation, an Indian think tank. Before the war, India bought most of its oil from Gulf countries.
New Delhi has repeatedly defended its purchases of Russian oil as necessary to support its economy and keep energy prices steady for its huge population. In a Monday statement, India's Foreign Ministry said that its imports of Russian oil ramped up only after its traditional supplies were diverted to European countries during the Ukraine war.
The ministry also accused the US and the EU of operating a double standard — continuing to trade with Russia while penalising others for doing the same. 'The targeting of India is unjustified and unreasonable,' it added.
When facing pressure from bigger powers, India has also historically defended its autonomy in foreign policy, Chaulia said. That independent streak surprised many when
New Delhi remained neutral on Russia's invasion of Ukraine despite a volley of criticism.
Over the weekend, Modi vigorously defended India's right to prioritise its own economic wellbeing at a time of global uncertainty.
'Today, the world economy is going through many apprehensions, there is an atmosphere of instability,' Modi said in a speech during a Saturday rally in the northern Indian state of Uttar Pradesh. 'In such a situation, the countries of the world are focusing on their respective interests.'
He urged Indians to boost the economy by buying and selling only homegrown products 'made by the sweat of an Indian.'
The White House has rapidly ratcheted up pressure on India as Trump looks for ways to push President Vladimir Putin toward ending the Ukraine war. Trump has vowed to impose tariffs on countries that do business with Moscow, and threatened India with a 'penalty' for continuing to buy Russian goods.
Stephen Miller, deputy chief of staff at the White House and a top aide to Trump, accused India on Sunday of taking advantage of the US on trade and financing the war by buying Russian oil.
He also took aim at India's protectionist policies. 'India portrays itself as being one of our closest friends in the world, but they don't accept our products. They impose massive tariffs on us,' Miller said on Fox News.
A sticking point in negotiations is the US's push to open India's agricultural and dairy markets to foreign products, a politically sensitive issue for Modi. But India could pacify Trump in other ways, experts said, such as agreeing to big investments in the US that will allow him to claim a win.
Wall Street Journal The Wall Street Journal
Congress could limit the mutually assured political destruction as partisans move to redistrict more than once a decade. The Wall Street Journal
The White House is preparing to step up pressure against big banks over perceived discrimination against conservatives and crypto companies.