
New Delhi / Washington, D.C. — August 4–5, 2025 — India issued a strong rebuttal to former U.S. President Donald Trump’s renewed threat to raise tariffs on Indian exports over its import of Russian oil, accusing the U.S. and European Union of targeting India hypocritically and without justification.(turn0search5turn0news18)
Trump’s Original Accusation
Trump claimed on social media that “India is not only buying massive amounts of Russian Oil, but is reselling it for big profits”, adding that “they don’t care how many people in Ukraine are being killed by the Russian War Machine.” He warned he would “substantially raise the Tariff paid by India to the USA.”(turn0search5turn0search1turn0news16)
India’s Response: “Unjustified & Unreasonable”
India’s Ministry of External Affairs (MEA) responded with six sharp points:
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India began importing from Russia when traditional suppliers diverted their supplies to Europe post-Ukraine war—a move previously encouraged by the U.S. to stabilise global energy markets.(turn0search5)
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Indian imports guarantee predictable and affordable fuel costs, a necessity amid volatile global markets.(turn0search5)
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The MEA accused the U.S. and EU of hypocrisy, pointing out their much larger energy and goods trade with Russia.(turn0search5)
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EU-Russia trade in 2024 alone reached €67.5 billion in goods and €17.2 billion in services, significantly outpacing India’s dealings.(turn0search5)
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U.S. continues to import sensitive items from Russia—uranium, palladium, fertilizers, and chemicals—despite its criticism of India.(turn0search5)
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India vowed to take all necessary measures to safeguard its sovereign and economic interests.(turn0search5)
The MEA termed the targeting of India as “unjustified and unreasonable” and reaffirmed its resolve to protect its energy security.(turn0news18turn0search2)
Broader Trade & Strategic Fallout
The escalation reflects rising friction in U.S.-India relations. Trade experts and analysts note that India remains a net crude importer, and it only exports refined petroleum, not crude.(turn0news16turn0search7)
The rhetoric marks a stark divergence from the previously warm Indo-U.S. relationship. As political observers point out, it has undermined the once-celebrated “Modi–Trump friendship,” signaling a new era of mistrust and instability.(turn0news17turn0news20)
Meanwhile, Indian equity markets remained cautious. The Nifty 50 index was projected to open flat on August 5 amid foreign investor outflows and uncertainty over policy—offset slightly by expectations of a potential Reserve Bank rate cut to support growth.(turn0news19)
Summary Table
Parameter | Details |
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Trump’s Claim | India reselling Russian oil for profit; will raise U.S. tariffs |
India’s Rebuttal | Accused U.S. and EU of double standards; called targeting “unjustified and unreasonable” |
Domestic Justification | Oil imports ensure affordable and stable energy access for citizens |
Wider Trade Context | U.S. and EU maintain larger trade volumes with Russia |
Economic Response | Nifty markets cautious; RBI rate decision eyed |
Diplomatic Tone | Firm, defensive; preserves strategic autonomy |