Trump targets India for buying oil from Iran, Russia
The US has imposed 50 per cent tariffs on goods imported from India. From 25 per cent announced earlier, another 25 percent has been added due to India’s oil imports from Russia. All this has happened amidst the fact that trade talks are underway between India and US.
Before speaking about the tariffs coming into effect, President Trump said that India’s tariffs were amongst the highest in the world. “I don’t care what India does with Russia,” said President Trump. “They can take their dead economies down together, for all I care. We have done very little business with India; their tariffs are too high – among the highest in the world.”
However, a statement from the Ministry of External Affairs (MEA) justified India’s stance: “India has been targeted by the US and EU 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 US at that time actively encouraged such imports by India for strengthening global energy markets’ stability.”
India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by the global market situation. “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,” MEA added.
The EU in 2024 had a bilateral trade of €67.5 billion in goods with Russia. In addition, it had trade in services estimated at €17.2 billion in 2023. This is significantly more than India’s total trade with Russia that year or subsequently. European imports of LNG in 2024, in fact, reached a record 16.5 million tonnes, surpassing the last record of 15.21 million tonnes in 2022. The US continues to import uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals from Russia.
“In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” MEA added.
Meanwhile, PM Modi has said that whatever happens, India will not compromise on the interests of its farmers and dairy farmers.
The US Department of State and the US Department of Treasury’s Office of Foreign Assets Control (OFAC) have announced sanctions against eight India-based companies and five Indian nationals, as part of its latest Iran-related action targeting entities engaged in trade of Iranian oil, petroleum products & petrochemicals, as also those identified as part of a shipping empire controlled by Mohammad Hossein Shamkhani – the son of Ali Shamkhani, a top political advisor to the Supreme Leader of Iran. These sanctions are part of broader efforts to target those engaged in the ‘shadow fleet’ – a network facilitating the export of Iranian oil despite sanctions.
The sanctioned Indian companies are accused of importing Iranian-origin petrochemicals, worth millions of dollars, which are under US sanctions. Companies that wish to contest the US government’s action will now have to appeal to the US Treasury’s Office of Foreign Assets Control for remedial action, if any.
Time-tested partnership
“Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country. India and Russia have a steady and time-tested partnership,” said MEA spokesman Randhir Jaiswal.
India has consistently defended its decision to purchase Russian oil, citing national interest and the need to ensure energy security and stable global oil prices. However, reports suggest that public sector undertakings and private players have begun to reduce their imports of Russian oil, due to narrowing discounts and increased pressure from the West.
It may be recalled that Indian refiner, Nayara Energy, which is partly owned by the Russian oil company Rosneft, was sanctioned by the European Union, which affected its operations and led to the replacement of its CEO. Also, vessels carrying Russian oil to India were diverted due to US sanctions on shipping companies.
India’s crude oil imports from Russia have significantly increased since the Russia-Ukraine war, while imports from Iran have drastically declined due to US sanctions. Before the war, Russia accounted for only 0.2 per cent of India’s crude imports but, post-war (May 2023), Russian imports have surged to over 40 per cent of India’s crude intake.
As of now (July 2024-August 2025), imports from Russia remain high. It touched 2 million barrels per day (bpd) at peak in May 2023, while maintaining an average of 1.75-1.78 million bpd in July-August 2025. Also, before sanctions, Iran was one of India’s top oil suppliers during 2006-07 to 2018-19, accounting for 13 per cent of imports at its peak in 2007-08. Post-sanctions, India has been forced to reduce its imports from Iran. During 2024-25, it imported only $70.1 million worth of oil from Iran – a mere 0.04 per cent of its total requirements.