Trump India tariff: After the US President Donald Trump’s announcement to impose 25% tariffs on Indian imports and penalties for its Russian oil imports last week, the White House had presumed that New Delhi would come under pressure and Russian oil containers heading for the Indian ports may stop and get diverted to other countries. However, to the surprise of the US administration, especially President Donald Trump, the Indian government continued to import crude oil from Russia.
India rebutted the US claims that it has stopped receiving oil consignments from Russia. After this strong rebuttal, a sharp reaction was expected from the motormouth US president, who is surprising the world by trying to solve diplomatic puzzles on social media platforms like X. US President Donald Trump on Monday warned India of higher tariffs for buying Russian oil, drawing a spirited response from New Delhi.
Trump India tariffs: Latest news
“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,” Trump posted on his social media platform Truth Social. “They don’t care how many people in Ukraine are being killed by the Russian war machine. Because of this, I will be substantially raising the tariff paid by India to the USA,” Trump said.
In response, New Delhi said the targeting of India was “unjustified and unreasonable.” Like any major economy, India would take all necessary measures to safeguard its national interests and economic security, the external affairs ministry said in a statement.
5 reasons for India’s tough stand on Trump’s tariffs
According to the Indian stock market experts, New Delhi is looking beyond business and Trump’s tariffs. They are looking at the long-term goal, where India will be able to ensure the safety of the national economy with its remote control over the power corridors of India, not in the US. They said that bowing down to the US pressure on Russian oil imports looks beyond possibility when the Indian government has started importing Naphtha from Russia. They listed the top five reasons: clarity in diplomacy, control over the national economy, a self-reliant defence system, naptha import from Russia, and a fool-proof reciprocal action plan.
1] Trump-India-Russia triangle: “After Operation Sindoor, the US president hinted that Pakistan was closer to them when they didn’t use their veto power to stop the IMF aid to the Islamic nation. So, it seems the Indian government has made its decision that the US is their ‘friend’ and Russia is their ‘brother.’ When New Delhi has a choice, they will choose brother over friend,” said Sandeep Pandey, co-founder of Basav Capital.
2] New Delhi’s tough stand in India-US trade deal: Sandeep Pandey of Basav Capital said the Indian government is looking beyond Trump’s tariffs and the India-US trade deal. He said that the Indian economy is agriculture-driven, where around two-thirds of the national GDP comes from the agriculture sector. Opening this sector for a foreign player like the US would jeopardise the security of the national economy, as essential triggers like inflation and economic growth would slip from the government’s control. It will give access to the US and put the national economy in danger.
3] Naptha imports from Russia: “India snapping Russian crude oil import looks beyond possibility when it started importing Naptha from Russia. This move is the next step towards strengthening the Indian economy by breaking China’s monopoly on importing chemicals, plastics, and chemical resins. In the wake of the Russia-Ukraine war, Russia is unable to export Naphtha to the European and some other countries, as Moscow faces sanctions from the US and European countries. This developed China’s monopoly on global merchandise. This Indian move is expected to break this Chinese monopoly, and India is expected to become a net exporter of Naptha after meeting its domestic needs,” said Anuj Gupta, Director at Ya Wealth.
Explaining the benefits of Naphtha imports and its ability to mitigate the impact of Trump’s tariffs, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “India’s decision to import Naphtha from Russia marks a significant strategic shift aimed at strengthening economic resilience and strengthening its industrial base. This move diversifies critical supply chains essential for reducing overdependence on traditional sources and brings down input costs, particularly in energy-intensive sectors like petrochemicals and defence manufacturing. As India pushes back against Chinese dominance in the chemical industry, this import strategy aligns with its goal of asserting greater control over domestic production capabilities.”
The SMC Global Securities expert said New Delhi’s move to import Naptha from Russia signals India’s commitment to economic sovereignty and strategic autonomy in an increasingly separated global landscape. As global power structures become more inconstant, India’s calculated approach, balancing cost-efficiency, geopolitical leverage, and domestic industrial policy, will likely illustrate a proactive bid to safeguard its economic interests.
4] Self-reliant defence system: On how the Indian government is looking beyond Trump’s tariffs by now bowing down to the US pressure and signing the India-US trade deal, Sandeep Pandey said, “The US administration is trying to kill so many sparrows from the single arrow — Russian oil imports. They know that Russia transfers both fighter jets and its technologies to India, which has enabled India to a position where it can develop fighter jets. Starting Naptha from Russia is the next step in strengthening Indo-Russian defence ties, as it would help India develop a body of fighter jets and defence drones. So, as I said earlier, accepting the US demand to stop importing Russian crude oil seems beyond reality. It will jeopardise India’s defence program, and the Indian government is not in such a mood, as there is complete reluctance to break the ice for the frozen India-IS trade deal from New Delhi’s side. The jittery look is on the US side when their President makes a series of U-turns.”
5] Probability of reciprocal tariffs: Highlighting towards Indian strategy in not acceding to the US demands in the India-US trade deal, Avinash Gorakshkar, a SEBI-registered fundamental analyst, said, “The way the US government has raised tariffs on Indian imports, the Indian government may also raise tariffs on US imports. However, the US tariffs are more like a bully, while the Indian tariffs would be a diplomatic move. The Indian government may also consider reimposing the digital tax on income from online digital advertisements from US companies. If they do so, it would be highly detrimental for US tech giants like Microsoft, Meta, Alphabet, Google, Amazon, etc.”
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