On August 23, 2025, India’s External Affairs Minister S. Jaishankar sharply criticized U.S. tariffs on Indian goods over Russian oil imports, calling them “unfair, unjustified, and unreasonable.” He defended India’s energy trade as a national interest and questioned Washington’s selective targeting, highlighting diplomatic and economic tensions between the two nations.
Jaishankar Slams U.S. Tariffs on India
On August 23, 2025, India’s External Affairs Minister S. Jaishankar strongly criticized the U.S. decision to impose tariffs on Indian goods over New Delhi’s purchase of Russian oil. Speaking at The Economic Times World Leaders Forum 2025 in New Delhi, Jaishankar described the tariffs as “unfair, unjustified, and unreasonable,” and expressed dismay that the matter was not discussed with India before being announced publicly.
The United States recently imposed a 25 percent duty on Indian goods, with an additional 25 percent tariff scheduled to take effect on August 27. The measures were announced by the Trump administration, which has framed them as a response to India’s growing imports of Russian crude oil despite Western sanctions on Moscow. Jaishankar, however, argued that the tariffs were wrongly presented as an “oil dispute” and do not reflect the reality of global energy trade.
India Not the Largest Buyer of Russian Energy
Jaishankar highlighted that India is being selectively targeted, even though it is not the largest buyer of Russian oil or gas. He pointed out that China is the biggest buyer of Russian crude, while the European Union remains the largest importer of Russian LNG. Despite this, Washington has singled out India for punitive tariffs, while other countries with far larger energy trade volumes with Russia have faced no similar measures.
Taking a sharp tone, Jaishankar remarked, “If you have a problem buying oil or refined products from India, don’t buy it. Nobody forces you to buy it. Europe buys, America buys, so you don’t like it, don’t buy it.”
Jaishankar argued that India’s oil purchases serve both national and global interests. Domestically, cheap Russian oil helps secure affordable energy for India’s citizens. Globally, it contributes to stabilizing energy markets by keeping supplies flowing during a period of high volatility. Jaishankar reminded the audience that in 2022, during the early stages of the Russia-Ukraine conflict, it was the United States itself that encouraged India to buy Russian oil in order to prevent a global price spike.
Defending Strategic Autonomy
Emphasizing India’s independent foreign and economic policy, Jaishankar said, “At the end of it all, we make decisions that are in national interest.” He underscored that India’s “red lines” in trade negotiations, especially protecting farmers and small producers, are non-negotiable.
The minister also criticized the unconventional approach of the Trump administration, which announced the tariffs publicly without prior diplomatic engagement with New Delhi. Traditionally, such sensitive issues are addressed through bilateral consultations, but Jaishankar noted that this pattern of bypassing dialogue is becoming a broader trend under the current U.S. leadership, affecting not just India but global diplomacy.
Background: India’s Rising Role in Global Oil Trade
Since the onset of the Russia-Ukraine conflict in 2022, India has dramatically expanded its imports of discounted Russian crude oil. What was once less than one percent of India’s crude imports has now surged to around 42 percent by 2025. This has generated significant profits for Indian refiners, estimated at $16 billion, as they buy cheap Russian crude and re-export refined petroleum products to global markets, including some Western countries.
While this strategy has been a boon for India’s economy and energy security, it has drawn scrutiny from the United States and its allies. U.S. Treasury Secretary Scott Bessent has accused India of “profiteering” by reselling Russian oil products at a profit and undermining the effectiveness of sanctions intended to isolate Moscow economically.
U.S. Perspective and Strategy
From Washington’s point of view, the tariffs are part of a broader attempt to pressure countries that continue trading with Russia during the ongoing war in Ukraine. Bessent has suggested that if India does not align with Western sanctions, the U.S. could raise tariffs even further, and has urged European nations to consider similar measures.
The U.S. sees India’s energy trade as a loophole weakening the sanctions regime, particularly because refined Russian oil products exported by India sometimes find their way back into Western markets. This circular trade has been a key sticking point for American officials.
Economic and Diplomatic Implications
The tariffs pose significant economic risks for India. The country’s export-driven petroleum sector, which has thrived on cheap Russian crude, could lose competitiveness in the U.S. market due to higher duties. If tariffs escalate further, it could dent the profitability of Indian refiners and impact India’s trade balance with one of its largest partners, the United States.
Diplomatically, the move has created fresh tensions between Washington and New Delhi. The U.S.-India partnership has strengthened in recent years through strategic initiatives such as the Quad alliance with Japan and Australia. However, India’s firm rejection of U.S. pressure highlights its determination to maintain strategic autonomy in both foreign policy and trade. Jaishankar’s remarks serve as a reminder that India will not compromise on core economic priorities, even at the cost of friction with Washington.
Global Energy and Geopolitical Dimensions
India’s reliance on Russian oil underscores the difficulty of enforcing sanctions in today’s multipolar world. As one of the world’s fastest-growing economies and largest energy consumers, India prioritizes affordability and stability in energy supplies. The U.S. tariffs could further push India to deepen its partnerships with non-Western powers such as Russia, China, and other BRICS nations, diversifying its trade and energy security strategies away from Western influence.
The tariffs also come at a delicate moment in global geopolitics. President Donald Trump has recently extended a trade truce with China for 90 days, signaling a selective approach in his administration’s trade policy. At the same time, discussions are underway about a potential summit between Trump and Russian President Vladimir Putin, which could reshape global dynamics around the Ukraine conflict. Against this backdrop, India’s neutral stance and refusal to bow to external pressure highlight its careful balancing act in an increasingly fragmented international order.
Conclusion
The U.S. decision to impose tariffs on India over Russian oil purchases has set the stage for heightened trade and diplomatic friction between two strategic partners. While Washington views India’s energy trade as a threat to its sanctions regime, New Delhi insists it is acting in its national and global interest.
By firmly rejecting the tariffs and defending its autonomy, India has signaled that it will not allow external powers to dictate its energy or trade choices. The coming weeks will reveal whether these tensions escalate into a broader trade dispute or prompt a recalibration of U.S.-India ties in an already complex geopolitical landscape.