India Won’t Budge, Despite Trump’s 50% Tariff War Escalation, Digs Heels On National Interest: MEA

New Delhi: In a significant escalation of trade tensions, India has strongly condemned the United States' decision to impose an additional 25% tariff on Indian imports, terming the move "unfair, unjustified and unreasonable."

The sharp response comes after U.S. President Donald Trump signed an executive order targeting India's energy trade with Russia, marking a new phase in the ongoing economic dispute between the two nations.

India Digs Heels on National Interest, Refuses to Budge  

The Ministry of External Affairs (MEA) issued a firm statement, asserting that India will not compromise on its energy security despite mounting pressure from Washington.

"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," the MEA said.

"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. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests," the statement added.

Donald Trump Declares All-Out Trade War With 50% Tariff

President Donald Trump announced new economic sanctions against India through an executive order imposing additional 25% tariffs on Indian imports. The US has authorized the punitive measures today, specifically targeting what it describes as India's ongoing acquisition of Russian petroleum products.

The administration's order states these tariffs address India's "direct or indirect importation of Russian Federation oil," which it claims poses "an unusual and extraordinary threat to U.S. national security and foreign policy interests." This action marks a formalization of previously announced reciprocal tariffs, now specifically focused on penalizing India's energy trade with Russia - a persistent friction point in bilateral relations.

MEA Calls Out US, EU for "Hypocrisy" in Russia Trade

India accused the U.S. and European Union of double standards, pointing out that both continue to engage in trade with Russia despite their public opposition to the Ukraine conflict.

"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," the MEA noted.

MEA emphasized that India's crude oil purchases from Russia are driven by economic necessity rather than political alignment. "India’s energy strategy is dictated by global market conditions, not geopolitical posturing," the statement clarified.

Trump Claims Ignorance on US Imports From Russia

When questioned about India’s allegations of American double standards, President Trump appeared unaware of ongoing U.S. imports from Russia. 

"I don't know anything about it. I have to check..." Trump responded when confronted with India's argument that America continues its own commercial dealings with Moscow while criticizing others for similar trade practices.

What Is US Importing From Russia?

American imports from Russia stood at approximately $30 billion in 2021, with crude oil accounting for over $17 billion of that total. 

Following Russia's invasion of Ukraine in February 2022, these imports were halved to $14 billion. The decline continued sharply to $4.6 billion in 2023, before dropping further to $3 billion in the current year (2024). Notably, what was once a substantial crude oil trade has now dwindled to negligible levels. 

While publicly criticizing other nations' trade with Russia, the United States continues significant imports in several critical sectors:

• Fertilizers:  2021: $1.14 billon |  2024: $1.27 billion (11% increase)
• Uranium & Plutonium (nuclear materials): 2021: $646 million | 2024: $624 million (3% decrease)
• Palladium (for automotive/industrial use): 2021: $1.59 billion | 2024: $878 million (45% decrease)

Despite sustaining these import flows, the US has kept its censure focused on India.

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