Washington/New Delhi: US president Donald Trump announced an additional 25 per cent trade tariff on India on Wednesday. This will take the levy to 50 per cent. Trump had a 25 per cent trade tariff on India last week and had warned of additional penalties for purchasing crude from Russia.
In an executive order signed by Trump on Wednesday, it has been specified that the additional 25 per cent tariff on India is in response to its continued purchase of Russian oil. The order was a nine-section one, outlining the details of various aspects, like the background, the tariffs, the scope of duties and stacking, among others.
After Trump’s initial threat to impose a penalty, India had called out both the US and the European Union (EU) for doing trade with Russia even after the start of the Ukrainian war. The Ministry of External Affairs (MEA) had called the criticism by the US and EU as ‘unjustified and unreasonable’. India’s crude imports from Russia are driven by need and are intended to keep energy costs predictable and affordable for Indian customers.
In its statement, the MEA had clarified that India will take all necessary steps to protect its national interests and economic security. New Delhi’s energy imports are a sovereign decision driven by national interest and market realities, it had been emphasised.
“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. India has been targeted by the United States and the European Union 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 United States at that time actively encouraged such imports by India for strengthening global energy market stability,” it added.
India sources crude oil from approximately 41 countries. Russia accounts for around 30–35 percent of that supply, followed by Iraq at about 15 per cent. Other key suppliers include Saudi Arabia, the UAE, the US, and Kuwait, each contributing between 5–8 per cent, with smaller shares coming from other nations. The pivot to Russian oil was not ideological but economic — it was cheaper, offered deep discounts, and was available under a $60 per barrel price cap, which made sense for domestic energy security.
The MEA further noted that the EU had a bilateral trade of EUR67.5 billion in goods and EUR17.2 billion in services with Russia in 2023, significantly more than India’s total trade with Russia. The EU’s LNG imports from Russia reached a record 16.5 million tonnes in 2024.
The US also continues to import uranium hexafluoride for its nuclear industry, palladium for its electric vehicle industry, fertilisers, and chemicals from Russia, the MEA release stated.
India’s energy import strategy prioritises energy security and affordability. It has diversified its energy imports, increasing reliance on countries like Russia to meet its growing energy demands.
The MEA’s response came after US president Donald Trump accused India of buying “massive amounts” of Russian oil and reselling it for profit, claiming that this undermined efforts to end the Ukraine conflict and, as a result, he would “substantially raise the tariff paid by India to the USA”.
“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. However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” the MEA stated.
