‘India-US ties have weathered several challenges': MEA on Trump's tariff threat
Responding to the US's 25% reciprocal tariff that becomes effective on August 7 and an unspecified additional penalty for purchasing Russian oil, external affairs ministry spokesperson Randhir Jaiswal told a weekly media briefing that India remains focused on the 'substantive agenda' that the two sides have agreed on to drive the relationship. He also pointed to the potential for growing the 'strong defence partnership' with the US.
At the same time, Jaiswal defended India's procurement of energy and defence hardware from Russia, saying New Delhi and Moscow have a 'steady and time-tested partnership'. He also made it clear that defence requirements are determined by India's national security imperatives and strategic assessments.
'India and the US share a comprehensive global strategic partnership anchored in shared interests, democratic values and robust people-to-people ties. This partnership has weathered several transitions and challenges,' Jaiswal said in response to several questions regarding Trump's tariff policy.
'We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward,' he said.
The India-US defence partnership has strengthened over the last several years and decades, he said. 'There is potential for this partnership to grow further under the India-US COMPACT for the 21st century,' he added, referring to the COMPACT or Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology arrangement that was finalised when Prime Minister Narendra Modi met Trump in Washington in February.
People familiar with the matter said the Indian side is drawing a distinction between the actions of Trump and the institutionalised relationship between India and the US, which is not limited to trade. At the same time, the Indian side is mindful of the whimsical and unpredictable nature of the American leader's decisions, the people said on condition of anonymity.
'The relationship is not just about trade. It is also about defence, technology, students, people-to-people ties, the mobility of professionals and shared interests in the Indo-Pacific,' one of the people said. 'We have endured worse patches in the past, such as after India's nuclear tests in 1998.'
Jaiswal's remarks came a day after commerce minister Piyush Goyal told Parliament that India will take 'all necessary steps' to secure its national interest in the wake of the reciprocal tariff unveiled by Trump. Goyal said the government is examining the implications of the development and is engaged with all stakeholders, including exporters and industry, to assess the situation.
In an initial response to Trump's punitive tariff on India, the commerce ministry said India and the US are engaged in negotiations for concluding a 'fair, balanced and mutually beneficial' trade deal and New Delhi remains committed to that objective. At the same time, the government pledged to protect the interests of Indian farmers, entrepreneurs and Micro, Small and Medium Enterprises (MSMEs).
Trump has unleashed a barrage of social media posts this week, reiterating his claim that India's tariffs are among the world's highest and criticising India for having the 'most strenuous and obnoxious' trade barriers and for buying a majority of its military equipment and energy from Russia. 'I don't care what India does with Russia. They can take their dead economies down together, for all I care,' he said on social media.
While announcing a trade deal with Islamabad, Trump mockingly suggested that Pakistan could sell oil to India once the neighbouring country's energy reserves are developed with US assistance. He has also continued repeating his claim that he brokered a ceasefire between India and Pakistan in May, when hostilities erupted after New Delhi launched a military operation to target terrorist infrastructure in territories controlled by Islamabad in retaliation for the Pahalgam terror attack. The Indian side has said no foreign country had a role in the stopping of military actions.
Jaiswal responded to questions on these issues by saying that the sourcing of India's energy needs is 'guided by what is on offer in the markets and what is the prevailing global circumstances'.
In the context of India-Russia relations, Jaiswal said India's bilateral relationships with various countries 'stand on their own merit and should not be seen from the prism of a third country'. He added, 'India and Russia have a steady and time-tested partnership.'
Jaiswal said the sourcing of India's defence requirements is 'determined solely by our national security imperatives and strategic assessments'.
Shortly after the US and its Western partners slapped wide-ranging sanctions on Russia over the invasion of Ukraine, India ramped up the purchase of discounted Russian commodities, especially oil and fertilisers. Russia soon displaced Iraq and Saudi Arabia as the main suppliers of crude to India, the world's third largest oil importer. India is currently the biggest buyer of seaborne Russian crude, and purchased Russian oil worth $50.2 billion in 2024-25.
While talking about the 25% punitive tariff on India in a social media post this week, Trump also spoke of imposing a penalty for the purchase of Russian energy and military equipment. He has also threatened to slap tariffs of up to 100% on countries buying Russian oil unless Russia reaches a peace deal with Ukraine by August 7-9.
While Russia continues to account for close to 60% of the inventory of India's armed forces, the US has emerged as a key supplier of sophisticated weapon systems over the past two decades. Since 2008, India has contracted for US defence equipment worth at least $24 billion, including transport and maritime surveillance aircraft, maritime and attack helicopters, anti-ship missiles and howitzers.
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