New Delhi (EFE).- United States President Donald Trump’s decision to impose new tariffs on Indian imports has escalated tensions between Washington and New Delhi, jeopardizing a strategic partnership built to counterbalance China in Asia. The move announced Thursday is directly linked to India’s growing energy trade with Russia.
The Trump administration announced a “reciprocal tariff” of 25% on key Indian exports, including steel, aluminum, pharmaceutical components, and textiles.
The White House justified the decision by citing a persistent trade deficit and what it described as “high trade barriers” imposed by India.
However, Trump himself made the real motive clear: India’s continued energy relationship with Russia.
“India and Russia can sink their economies together,” Trump said Thursday, emphasizing that the tariffs are also a form of pressure over India’s refusal to isolate Moscow.
Since Russia’s full-scale invasion of Ukraine in 2022, India has become the largest buyer of discounted Russian crude oil.
The resulting bilateral trade reached a record 65.7 billion dollars last year, challenging Western efforts to economically isolate the Kremlin.
India profits from Russian oil and re-exports to the West
India’s energy relationship with Russia extends beyond domestic consumption.
Indian refineries import discounted Russian crude, process it, and then re-export refined products such as diesel and gasoline, often to Europe.
This practice exploits a loophole in Western sanctions, effectively allowing Russian oil to keep flowing through global markets.
The arrangement has become a cornerstone of India’s energy strategy, providing economic benefits while maintaining a diplomatic balance between major powers.
India pushes back and diversifies trade partnerships
India has responded firmly to the US decision, invoking its doctrine of “strategic autonomy.”
Government officials stated publicly that New Delhi “will not be intimidated.” Behind the scenes, India has accelerated efforts to diversify its economic alliances.
A recent Free Trade Agreement signed with the United Kingdom marks a significant step in this direction, signaling India’s intent to expand its global economic reach.
While India strengthens energy ties with Moscow for pragmatic reasons, it is distancing itself from Russian military equipment.
The country has increasingly turned to Western suppliers, particularly the US and France, for defense procurement, becoming one of their top clients.
The newly imposed tariffs are expected to hit Indian exporters, especially in industries like steel and textiles.
But beyond the economic impact, the dispute is seen as a critical test of India’s foreign policy strategy, which balances relations with multiple global powers without committing fully to any bloc. EFE
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