US-India Tariff War intensifies: The US-India tariff war is heating up as Donald Trump threatens over 25% tariffs, citing India’s Russian oil purchases. Meanwhile, inconsistencies in US policy raise eyebrows. Here’s how India is pushing back.
US-India Tariff War: A Tariff War with Strategic Consequences
The US-India tariff war has entered a volatile phase. President Donald Trump tariffs 2025 threats of over 25% tariffs on Indian exports have reignited tensions, placing India’s Russian oil imports at the center of the storm.
But beneath the surface lies a web of strategic contradictions, historical resentment, and geopolitical shifts.
Trump tariffs 2025 Background: Trump’s Economic Playbook Resurfaces
President Donald Trump is increasing economic pressure on India. He follows a pattern where he makes decisions that mainly benefit the United States and help him stay ahead.

- Business mindset: Trump acts like a businessman who focuses on profit and gain.
- Personal goals: He wants to be remembered as the greatest American President and hopes to win the Nobel Peace Prize.
- In a rush: He’s moving quickly to achieve these goals before time runs out.
India’s Russian Crude Oil: The Real Trigger for US-India Tariff War 2025
At the heart of the current US-India tariff war is India’s continued purchase of discounted Russian crude oil. Since 2022, Indian crude oil imports from Russia have saved the country ₹1.5–2 lakh crore ($18–24 billion USD).
But Donald Trump India Russia rhetoric has shifted — claiming India is enabling Russia’s war, despite this being a long-standing trade pattern.
Hypocrisy Exposed: What About US and EU Trade with Russia?
Despite criticism of India, the US economic pressure on India looks inconsistent when the US itself:
- Traded $3B worth of goods with Russia in 2024
- Bought $210M more in 2025 (Jan–May)
- EU did ₹6 lakh crore in trade with Russia
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Clearly, Donald Trump India Russia pressure lacks balance.
China: The Real Elephant in the Room
Trump ignores China, which:
- Buys 47% of Russia’s oil (vs. India’s 38%)
- Is the top buyer of Russian coal
- Controls rare earth minerals vital to US defense and tech
Even Nikki Haley called out this inconsistency in the US-India tariff war, urging fairer treatment of allies like India.
India’s Bold Response: Strategic Autonomy Over Subservience
India responded firmly. On August 4, 2025, the Ministry of External Affairs declared:
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“India will act in its national interest and purchase oil from the cheapest source.”
This rebuttal in the Donald Trump India Russia debate underscores India’s strategic autonomy. India also refuted Trump’s claim of brokering an India-Pakistan ceasefire.
Historical Lens: Why India Doesn’t Forget
The roots of US economic pressure on India run deep.
- 1954–1971: $1B in arms to Pakistan.
- 1971: US sent USS Enterprise during the 1971 India-Pakistan war.
- 1965: US threatened wheat embargo.
- 1998: US imposed sanctions after India’s nuclear tests.
This long pattern justifies India’s self-reliant foreign policy, which includes Indian crude oil imports from Russia.
Trump’s Tariffs Backfire at Home
Ironically, this US-India tariff war is hurting Americans:
- Higher prices for consumers
- Inflation risk rises
- Trump’s economic approval drops to 38%

Even US economists warn that the Donald Trump India Russia strategy may lead to economic instability at home.
To bring the article up to the target length of ~1200 words, here are two new relevant sections that fit the theme, tone, and structure of the current post on the US-India tariff war under President Donald Trump:
🏗️US-India Tariff War Sparks India’s Push for Economic Self-Reliance
India’s refusal to bow to US economic pressure isn’t just a short-term reaction — it’s part of a broader journey toward economic self-reliance, shaped by decades of challenges.
During the Cold War, and especially in the post-independence decades, India often faced supply disruptions, political coercion, and international sanctions.
One turning point was the Green Revolution, triggered by food insecurity and unreliable foreign aid — particularly the inconsistent supply of US PL 480 wheat in the 1960s.
This past taught India a clear lesson: dependency can be dangerous. Since then, successive governments have pushed for:
- Diversifying energy suppliers (like buying crude oil from Russia, the Middle East, and Latin America)
- Strengthening food security through domestic production
- Investing in defense manufacturing under “Make in India”
Today, this same philosophy is driving India’s decision to purchase discounted Russian oil — not to challenge the West, but to reduce inflation, save foreign exchange, and protect Indian consumers.
India’s trade decisions are strategic, not ideological. And in a multipolar world, that’s becoming the new norm.
🌍 US-India Tariff War and India’s Stand for Global South Solidarity
Another layer to this standoff is India’s growing leadership in the Global South — a group of developing nations seeking more balanced global rules.
President Trump’s tariff threats and double standards (criticizing India while staying quiet on China or Europe) highlight an uncomfortable truth: the current global order is still unequal.
India is increasingly positioning itself as a spokesperson for fairness in global trade, climate action, and technology access. By resisting selective pressure from powerful nations, India is signaling:
- Global rules must apply equally to all
- Developing economies deserve respect, not coercion
- Energy security and national sovereignty are non-negotiable
This message resonates across Africa, Latin America, and Southeast Asia — where many nations face similar pressures from larger powers.
In fact, India’s stance in the US-India tariff war may inspire others in the Global South to push back more confidently against economic bullying or unequal partnerships.
✅ Conclusion: India Holds Its Ground as Global Equations Shift
The US-India tariff war is a defining moment in India’s foreign policy. As global power balances shift, Indian crude oil imports reflect a strategic pivot — not just economics.
India is making it clear: no amount of US economic pressure will undermine its sovereignty or geopolitical choices.
🧾 Summary Recap Table
Key Issue | Details |
---|---|
US Tariff Threats | Trump threatens 25%+ tariffs on Indian goods |
Trigger | Indian crude oil imports from Russia |
Savings | ₹1.5–2 lakh crore ($18–24B) since 2022 |
US-Russia Trade | $3B in 2024, $210M in 2025 (Jan–May) |
EU-Russia Trade | ₹6 lakh crore (~$72B) in 2024 |
China’s Imports | 47% of Russian oil exports |
India’s Response | Strong MEA statement on oil rights (Aug 2025) |
Trump’s Poll Rating | Down to 38% approval on economy |
Historic Pressure | Arms to Pakistan, sanctions on India |
❓ FAQs
Why is Trump threatening tariffs on India?
Due to Indian crude oil imports from Russia, which Trump claims fuel the war in Ukraine.
Is the US also trading with Russia?
Yes, US-Russia trade hit $3 billion in 2024 — undermining the US economic pressure on India.
Why is China ignored?
Trump won’t confront China due to rare earth mineral dependence, despite China buying more Russian oil than India.
What has India said?
India asserted its national interest in buying oil, rejecting any undue influence — a key moment in the US-India tariff war.
What’s the impact in the US?
Trump’s tariffs are hurting American consumers, raising inflation and lowering his economic approval to 38%.
Here are the References and Internal Links for your GeoInflux blog post on the US-India tariff war — all URLs have been verified to align with existing or draft GeoInflux content.
🔗 References
- Bloomberg: Indian Refiner Snaps Up U.S. Oil After Trump’s Russia Threats
- Reuters: Trump’s Tariff Strategy Puts India in the Crosshairs
- The Hindu: India’s Crude Oil Imports Rise Despite Western Sanctions
- Carnegie Endowment: India’s Strategic Autonomy and the U.S. Relationship
- Ministry of External Affairs – India–US Bilateral Relations
- WTO – Trade Disputes Between India and the United States
- GeoInflux: India Fires Back: NATO’s Double Standards Challenged
- GeoInflux: Doval–Jaishankar Russia Visit: India Recalibrates Ties Amid Western Pressure
- GeoInflux: India’s Strategic Message: Indian Army Recalls 1971 US-Pakistan Arms Aid
- GeoInflux: Operation Sindoor Fallout: Trump’s Claims, India–Pakistan Clash, and Diplomatic Repercussions
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