India calls Trump's tariff threat over Russian oil purchases ‘unjustified'
Mr Trump on Monday accused India of profiting from discounted Russian crude while disregarding the ongoing conflict in Ukraine.
"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," the US president said on social media. 'They don't care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA."
India's foreign ministry responded swiftly. 'The targeting of India is unjustified and unreasonable," spokesperson Randhir Jaiswal said, adding that New Delhi would "take all necessary measures to safeguard its national interests and economic security'.
Mr Jaiswal also highlighted the ongoing energy and industrial trade between Russia and the West. He pointed out that the EU had goods trade with Russia of £57.38 bn in 2024 in addition to £14.62 bn in services trade the previous year.
The US, meanwhile, continued to import Russian uranium for its nuclear sector and palladium for electric vehicles.
'It is revealing that the very nations criticising India are themselves indulging in trade with Russia,' he said. 'Unlike our case, such trade is not even a vital national compulsion for them.'
The escalating rhetoric marks a new low in a once-warm relationship between Mr Trump and Indian leader Narendra Modi, characterised by public camaraderie and joint rallies.
Growing friction over trade, energy policy, and Mr Trump's overtures to rival Pakistan have strained US ties with New Delhi, and pressure from Western capitals to reduce its reliance on Russian oil is only piling up the pressure.
Indian officials argued that the pivot to Russian oil was a market-driven necessity after traditional supplies were redirected to Europe following Western sanctions.
India imported an average of 1.75 million barrels a day of Russian oil from January to June 2025, making it the largest buyer of seaborne Russian crude, up one per cent from a year ago, according to data analysed by Reuters.
In recent months, however, public sector refiners in India, facing pressure and uncertainty, have started reducing Russian oil purchases.
Imports in July fell to 1.6 million barrels per day, a 24 per cent decline from June and a 23.5 per cent fall year-on-year, according to tracking data from Kpler.
Indian officials though maintained that there had been no formal policy change. Indian Oil Corp, the country's largest refiner, recently purchased 7 million barrels from the US, Canada, and Middle Eastern suppliers, Reuters reported, quoting unnamed trade sources.
Mr Trump earlier imposed a 25 per cent levy on Indian imports, further unsettling bilateral relations. The US is India's largest trading partner. Indian exports to the US totalled £68.17bn in 2024 with a trade surplus of £35.88bn.
India is not alone in importing Russian crude. According to think tank GTRI, China imported £49.45bn worth of Russian oil in 2024, compared to India's £39bn. Yet, Mr Trump has so far refrained from criticising Beijing.
Eric Garcetti, former US ambassador to New Delhi, previously said that Washington supported Indian crude purchases from Russia to help stabilise energy markets.
Indian energy minister Hardeep Singh Puri similarly defended the imports as both essential and sanctioned within the price cap framework. 'India helped stabilise global energy prices,' Mr Puri told CNBC. 'We were advised, including by our friends in the United States, to please buy Russian oil – but within the price cap.'
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