India called the US action “unfair and unjustified,” highlighting other nations’ continued Russian oil trade. Trump cited national security concerns, claiming India’s Russian oil imports threaten the US.
New Delhi: India has issued a strong rebuttal to the United States over its decision to impose additional tariffs in response to New Delhi’s continued purchase of Russian oil. In an official statement, the Ministry of External Affairs (MEA) described the move as “unfair, discriminatory, and lacking justification.” The statement comes after US President Donald Trump signed an Executive Order on Wednesday, August 6 imposing an additional 25% on imports from India in response to New Delhi’s purchase of Russian oil. India defended its energy trade policy, stating that its oil imports are driven by market needs and are essential to meet the energy requirements of its 1.4 billion people. “Our decisions on oil procurement are based on market considerations and aimed at securing the country’s energy interests,” the MEA said, pushing back against what it sees as an attempt to pressure India over sovereign policy choices.Terming the U.S. measure “deeply disappointing,” the ministry pointed out that several other nations continue to source oil from Russia according to their own strategic interests. It said singling out India for penalties was unjust and warned that appropriate steps would be taken to protect national interests.
“The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India…We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,” a statement by MEA spokesperson Randhir Jaiswal read.
Trump Cites National Security Concerns
According to the order issued by the White House, Trump cited matters of national security and foreign policy concerns, as well as other relevant trade laws, for the increase, claiming that India’s imports of Russian oil, directly or indirectly, pose an “unusual and extraordinary threat” to the United States. After the order, the total tariff on Indian goods will be 50 per cent. While the initial duty becomes effective on August 7, the additional levy will come into effect after 21 days and will be imposed on all Indian goods imported into the US, except for goods already in transit or those meeting specific exemptions.
The Executive Order also allows for modifications based on changing circumstances, including potential retaliation by other countries or steps taken by Russia or India to address the national emergency. “Accordingly, and as consistent with applicable law, articles of India imported into the customs territory of the United States shall be subject to an additional ad valorem rate of duty of 25 per cent,” the order stated.
“This rate of duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time 21 days after the date of this order, except for goods that (1) were loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to entry into the United States before 12:01 a.m. eastern daylight time 21 days after the date of this order,” the order added.
Earlier on Tuesday, Trump, hours after he mentioned raising tariffs on India, said he would increase the tariff charged on imports from India from the current rate of 25 per cent “very substantially” over the next 24 hours due to New Delhi’s continued purchases of Russian oil, Reuters reported. “They’re fuelling the war machine, and if they’re going to do that, then I’m not going to be happy,” Trump told CNBC in an interview, as cited by Reuters.
According to the report, he added that the main sticking point with India was that its tariffs were too high but did not provide a new tariff rate. MEA in response stated that 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 markets stability. India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation. However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” the statement noted.
MEA spokesperson said that the European Union in 2024 had a bilateral trade of Euro 67.5 billion in goods with Russia. In addition, it had trade in services estimated at Euro 17.2 billion in 2023.”This is significantly more than India’s total trade with Russia that year or subsequently. European imports of LNG in 2024 reached a record 16.5 million tonnes, surpassing the last record of 15.21 million tonnes in 2022.
“The spokesperson said that Europe-Russia trade includes not just energy, but also fertilisers, mining products, chemicals, iron and steel and machinery and transport equipment.
“Where the United States is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers, as well as chemicals. In this background, 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,” the statement said.
(With ANI inputs)