- Trump announced high tariffs on India in response to the re-export of petroleum products from cheap Russian oil.
- India firmly rejected the US threats, defending its sovereignty and energy interests.
- Financial markets reacted nervously, the rupee fell, and the stock market recorded corrections.
- Delhi accuses the West of hypocrisy, pointing out that other countries continue to trade with Russia.
US criticises India for re-exporting crude from Russia
US President Donald Trump has announced higher tariffs against India in response to its actions in importing cheap Russian oil. Taking advantage of discounted prices, India processes crude at domestic refineries and then exports oil products, including to the US. Trump has described this practice as “brazen” and announced “significant tariffs” to end it.
No details of the level or scope of the planned tariffs have been provided at this point, but the president’s mere declaration has caused concern in financial markets. Investors fear an escalation of trade tensions between the world’s two key economies.
India responds: defence of national and energy interests
Indian authorities reacted strongly to the White House announcement. The Ministry of External Affairs described the US threats as “unacceptable and one-sided” and stressed that the country would defend its energy sovereignty. Purchases of Russian oil are aimed at ensuring stable and affordable fuel prices for citizens and supporting Indian economic growth.
It also pointed out that many Western countries still trade with Russia, which New Delhi believes weakens the validity of the US allegations. In response to trade tensions, the rupee exchange rate temporarily weakened against the dollar, but central bank intervention prevented further declines. The stock market has also seen slight downward corrections and investors are watching developments with concern.
