US President Donald Trump has warned India about raising tariffs on its exports because of its continued purchase of Russian oil. However, India has made it clear that it will not change its energy policy under pressure. Indian officials said they will put their citizens’ needs and economic interests first.

A senior Indian government official told , “We will go solely by the interest of our consumers and opt for the best option price-wise. If Russian crude works out cheaper than what we can get from other sources, why should we penalise our consumers?”

Cheaper oil benefits India and beyond

India started buying large amounts of discounted Russian crude after the West imposed sanctions on Moscow in 2022. Today, India imports around 1.7 million barrels per day. Refiners are not just using it for domestic needs—they are exporting refined fuels like diesel and jet fuel to other countries, including European markets.

This strategy has helped India keep fuel prices stable at home while also benefiting global supply. In fact, the trade with Russia has helped Europe indirectly, even as it tries to limit Russian oil.

Trump calls India’s oil trade profiteering

Trump has accused India of making money off Russian oil while ignoring the war in Ukraine. “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,” he said. “They don’t care how many people in Ukraine are being killed by the Russian War Machine.”

He also warned, “Because of this, I will be substantially raising the Tariff paid by India to the USA.”

Though no exact numbers were provided, Trump has already imposed a 25% tariff and suggested it could go up to 100% unless India changes course. His next deadline is August 7, when he expects Russia to agree to a ceasefire. If not, he plans to target countries like India, China, and Brazil with more penalties.

India says its policy is fair and justified

India’s Ministry of External Affairs issued a strong response. “The targeting of India is unjustified and unreasonable,” it said. The ministry pointed out that the US and Europe also continue some trade with Russia.

Indian officials explained that they only turned to Russian crude when traditional suppliers started diverting oil to Europe. The US had even encouraged India to keep buying—within the G7 price cap. Energy Minister Hardeep Singh Puri confirmed this in July, saying, “India was advised by Washington to keep buying—‘but within the price cap.’”

Doval heads to Moscow for key talks

India’s National Security Adviser Ajit Doval is visiting Moscow this week to discuss the challenges ahead. Officials say India is balancing three major goals: keeping energy affordable, resisting outside pressure, and securing long-term interests.

So far, India has not cut back on Russian imports. In fact, it is exploring deeper discounts as Trump increases pressure.

Business experts call Trump’s claim unfair

Indian trade experts have also criticized Trump’s move. A statement from the Global Trade Research Initiative (GTRI) said, “India's oil trade with Russia has taken place with full transparency and broad understanding with the US… Trump's decision to raise tariffs on India citing oil trade is not only unjustified—it ignores market realities, misrepresents trade data, and undermines a key strategic partnership in the Indo-Pacific.”

Tensions rise over BRICS and dollar talks

Trump’s anger is not limited to oil. He also attacked India’s role in BRICS and its support for finding alternatives to the US dollar. He claimed India has “the most strenuous and obnoxious non-monetary trade barriers.”

One official said India will not allow genetically modified American crops like corn and soybeans and will continue to protect its farm and dairy sectors—despite US pressure.

India explores options but stays the course

India could shift to buying oil from Iraq, Saudi Arabia, the UAE, and the US if needed. In fact, India’s biggest refiner recently bought oil from the US and UAE—likely as a backup plan, not a major shift.

During recent trade talks, India showed interest in buying more American gas, fertilizers, and defense equipment. But Prime Minister Narendra Modi has made it clear that India won’t open up sensitive sectors like dairy.

Trump and Modi were once seen as close allies. But their relationship has cooled. Trump has previously threatened India over Kashmir, claimed credit for peace talks, and now targets energy and trade policies.

India rejects political pressure

Trump’s latest warnings about Russian oil reflect his frustration with President Putin. His recent submarine deployment added more tension. Yet, India remains focused on protecting its own interests.

An Indian official summed it up: “We are guided by what’s best for Indian consumers, not what’s best for Washington politics.”