India Faces US Criticism Over Russian Oil Purchases, Trump-Era Tariffs

K N Mishra

    29/Aug/2025

What’s covered under the Article:

  • US Senator Lindsey Graham criticises India for buying Russian oil, calling it support for Putin’s war machine amid the Ukraine conflict.

  • Trump-era 50% tariffs on Indian exports continue to strain trade, impacting textiles, chemicals, and machinery in the short term.

  • India defends its Russian oil imports, citing national interests and examples of other nations like the EU continuing similar trade.

India has once again found itself at the centre of global geopolitical and trade debates after US Senator Lindsey Olin Graham strongly criticised New Delhi’s decision to buy Russian oil, saying that India is “paying the price” for supporting Russian President Vladimir Putin amid the Ukraine war. The statement, made on Thursday (local time) in a post on X (formerly Twitter), also targeted China and Brazil, warning that countries purchasing Russian oil are indirectly fueling the war in Ukraine.

Senator Graham, who represents South Carolina, remarked: “India, China, Brazil and others who prop up Putin’s war machine by buying cheap Russian oil: How do you feel right now that your purchases have resulted in innocent civilians, including children, being killed? India is experiencing the cost of supporting Putin. To the rest, you will soon too.”

This strong statement has sparked debate, not only about India’s energy security strategy but also about its position in balancing relations with global powers like the United States, Russia, and Europe.


US Criticism of India’s Russian Oil Purchases

The United States has consistently expressed displeasure with India’s decision to import oil from Russia, particularly after the invasion of Ukraine. Washington argues that such purchases undermine Western sanctions and indirectly strengthen Moscow’s economy at a time when it faces international isolation.

India, however, has defended its stand repeatedly, highlighting that it has the sovereign right to make decisions in line with its national interests. New Delhi has stressed that European Union (EU) nations themselves continue to import Russian energy in various forms, making it unfair to single out India.

Indian officials have often argued that cutting ties with Russian oil abruptly would harm India’s energy security, as the country depends heavily on affordable imports to meet its growing demand. The government has emphasised that buying oil at discounted prices helps stabilise inflation and ensure access to reliable energy supplies for millions of citizens.


Trump-Era Tariffs Continue to Hurt Indian Trade

While the criticism of oil imports dominates headlines, India is also grappling with trade restrictions imposed by the Trump administration. Former US President Donald Trump had initially announced a 25% tariff on Indian products but later doubled it, making it a 50% levy on most Indian exports.

This tariff decision excluded only a handful of products but hit sectors like textiles, chemicals, and machinery the hardest, affecting India’s competitiveness in the US market. Trump justified the move by alleging “unfair trade practices” by India, but New Delhi called the tariffs “unjustifiable and unreasonable.”

Even today, these tariffs remain a major challenge for Indian exporters, who are struggling to maintain their market share in one of the world’s largest consumer economies.


Government of India’s Response

In response to the US criticism and tariffs, the Union Commerce & Industry Ministry issued a statement clarifying that while the tariffs will indeed impact certain sectors, the effect will be short-term.

A senior ministry official told ANI: “It is understood that 50 per cent tariffs are going to impact trade, especially the sectors on which tariffs are there. They will suffer some trade loss in the US. There will be an impact on textiles, chemicals, machinery, etc. for the short run, but it will not be a very long-term loss.”

The government believes that India’s long-term trade fundamentals remain strong, with diversified export markets, expanding domestic production, and new trade agreements with other countries.


India’s Balancing Act Between Global Powers

The latest remarks from Senator Graham highlight the difficult balancing act India faces in its foreign policy. On one hand, India enjoys strong defence and strategic ties with the United States, especially through platforms like the Quad alliance (India, US, Japan, Australia). On the other hand, India shares a longstanding defence and energy partnership with Russia.

India has so far maintained a neutral stance on the Ukraine war, refraining from voting against Russia in UN resolutions while calling for dialogue and peaceful resolution. This has drawn criticism from the West but also reflects India’s strategy of safeguarding its energy needs and geopolitical autonomy.


Economic and Strategic Implications

The combination of Russian oil imports and US tariffs creates a complex challenge for India:

  • On the economic front, sectors like textiles, chemicals, and machinery face short-term trade setbacks in the US.

  • On the geopolitical front, India faces heightened scrutiny from Washington, even as it seeks stronger ties in defence, technology, and supply chain partnerships.

  • On the energy security front, discounted Russian oil continues to provide relief for India’s economy, especially during times of global inflation.

Experts argue that India is unlikely to stop importing Russian oil anytime soon, given the economic advantages. However, it will continue to negotiate with the US to reduce tariffs and improve trade relations.


Conclusion

India’s strategic autonomy and economic resilience remain central to its policy decisions amid increasing global criticism. While Senator Lindsey Graham’s comments underscore Washington’s disapproval of India’s choices, New Delhi continues to justify its Russian oil imports as a matter of national interest.

At the same time, the Trump-era tariffs still weigh heavily on Indian exports, though officials insist the impact will remain limited in the long run. The situation reflects the delicate balance India must maintain in navigating international politics, safeguarding its economy, and preserving its role as a key global player.


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