The recent imposition of a 25% tariff on Indian goods by the United States, under President Donald Trump’s administration, has put a strain on the already delicate India-US relations.
The move, aimed at pressuring India to reduce its dependence on Russian oil, has been met with criticism from New Delhi, which views it as an unfair and unjustified measure.
According to Trump, India’s imports of Russian oil are “helping fuel Russia’s war in Ukraine,” and the tariffs are necessary to pressure Moscow into a peace deal.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits… They don’t care how many people in Ukraine are being killed by the Russian war machine,” Trump posted on his Truth Social platform on July 30.
The tariffs, which bring the total duty on Indian goods to 50%, have been criticized by Indian officials, who argue that the country is being unfairly singled out.
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” the Indian Ministry of External Affairs said in a statement.
Reliance Industries, led by Asia’s richest person, Mukesh Ambani, has been the biggest importer of Russian crude oil in India.
According to data from the Centre for Research on Energy and Clean Air (CREA), Russian crude comprised a mere 3% of Reliance’s Jamnagar refinery’s total crude imports in 2021, but this has shot up to an average of 50% in 2025. The company has exported products made from Russian crude oil to countries that have sanctioned Russia, including the US.
Analysts predict that the tariffs will have a significant impact on India-US trade relations.
“It seems to me that even if most of the profits went to Reliance, the Indian government has found it convenient to continue this trade with Russia, both because the cheaper oil imports helped with India’s current account deficit and also helped send a message of non-alignment,” said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security.
Ajay Srivastava, founder of the Delhi-based Global Trade Research Initiative, called Trump’s tariff move “a total sham.” “The whole thing of putting tariffs is a sham when they haven’t called out the biggest importer of Russian oil that is China,” Srivastava said, adding that Trump was “scared to call out China… If tomorrow Trump and Putin come to an agreement [over Ukraine], US will find another pretext to put tariffs on India”.
The move has also raised questions about the unequal treatment of India and China by the US. While India has been slapped with hefty tariffs, China, the largest buyer of Russian oil, has not faced similar punitive measures.
This disparity has been attributed to the sensitive trade talks between the US and China, aimed at reducing import duties and improving market access.
The tariff hike has led to concerns about the potential impact on India’s economy, particularly the export sector.
Indian exports worth nearly $40 billion, spanning textiles, marine products, and leather goods, are likely to be affected. Sectors heavily dependent on the US market will be hit hardest, with exporters already warning of potential layoffs and reduced competitiveness.
In response to the tariffs, India has vowed to take “all actions necessary to protect its national interests.”
The Indian government has reiterated its long-standing friendship with Russia and moved to ease tensions with regional rival China in recent days.