By Ethan Caldwell 
The Government of India today issued a strong response to U.S. President Donald Trump’s announcement of a 25% tariff on Indian exports, effective August 1, 2025, and threats of additional penalties over India’s continued purchase of Russian oil. The Ministry of External Affairs (MEA) emphasized that India’s energy import decisions are driven by economic necessity and national interest, rejecting the U.S. tariff threats as “unjustified and unreasonable.”In a statement, MEA spokesperson Randhir Jaiswal highlighted India’s critical role in stabilizing global energy markets by importing Russian crude oil, which constitutes approximately 35% of India’s oil imports. “India’s actions have prevented a global oil price surge, which would have harmed consumers worldwide, including in the U.S. and EU,” Jaiswal said, noting that India buys Russian oil below the EU’s price cap and that both the U.S. and EU continue to engage in trade with Russia, including imports of uranium, palladium, and fertilizers.
The tariff escalation follows President Trump’s July 30, 2025, announcement on Truth Social, where he criticized India’s trade barriers and its purchase of Russian oil and military equipment, accusing India of enabling Russia’s war in Ukraine. Trump further threatened to “substantially raise” tariffs On Monday, alleging India profits by reselling Russian oil on the open market. Indian officials refuted these claims, clarifying that oil purchase decisions are made by independent refineries based on price, quality, and logistics, not government mandates.
Prime Minister Narendra Modi’s government underscored India’s longstanding policy of strategic autonomy, stating, “Our bilateral relationships with various countries stand on their own merit and should not be dictated by third parties.” The MEA also recalled that the U.S. had initially encouraged India to import Russian oil to stabilize global markets after Russia’s 2022 invasion of Ukraine.
While India remains committed to ongoing trade negotiations with the U.S. for a fair and mutually beneficial agreement, the government signaled a potential shift in strategy. Sources indicate that India is exploring options to diversify oil imports, including increasing purchases from the U.S., Canada, and Middle Eastern countries, to mitigate the impact of potential U.S. and EU sanctions. However, officials stressed that long-term contracts and economic realities make an immediate halt to Russian oil imports impractical.
The Indian government also expressed frustration over President Trump’s public claims of brokering a ceasefire between India and Pakistan in May 2025, which India denies, and his recent alignment with Pakistan, including a deal to develop Pakistani oil reserves. These actions have strained the once-warm relationship between Modi and Trump, who met in February 2025 to discuss strengthening bilateral ties.
“India will take all necessary measures to safeguard its economic security and the welfare of its 1.4 billion citizens,” Jaiswal affirmed. The government is studying the implications of the U.S. tariffs and preparing to protect Indian exporters, farmers, and small businesses from adverse impacts while continuing to prioritize affordable energy for its population.
Andreas Lundberg 
Dale Chaucer