President Donald Trump on Wednesday announced that the United States would impose a 25 per cent tariff on Indian imports, effective August 1. This announcement was made via Truth Social, the social media platform owned by the President.
President Trump stated that this decision also includes a penalty on India. The primary reasons cited for this penalty are India's continued procurement of military equipment and energy from Russia, especially amidst the ongoing conflict in Ukraine. Trump emphasised that India has historically sourced the majority of its military supplies from Russia and, alongside China, is one of Russia's largest energy buyers. He remarked, "At a time when everyone wants Russia to stop the killing in Ukraine, these things are not good."
India's stance on Russia and military purchases
India has consistently affirmed that Russia is a close and long-standing ally, a relationship that has endured for decades. This partnership was recently highlighted during India's conflict with Pakistan, where India deployed the Russian-made S-400 air defense system.
India's historical reliance on Russian military hardware is extensive, encompassing a wide range of equipment from missiles and aircraft to tanks and naval assets. This relationship has proven crucial in times of need; for instance, Russian-origin military assets were utilised during the Kargil conflict in 1999. In recent years, India has also expanded its military purchases to include equipment from the United States.
India's position on Russian oil imports
Analysts suggest that India is unlikely to compromise on its policy of purchasing Russian oil simply due to US pressure. External Affairs Minister S Jaishankar has repeatedly articulated India's clear stance, the country will prioritse the interests of its citizens first and will procure oil from any seller offering the best possible price.
In August 2024, Jaishankar explained, "India is a big oil consumer... We are a big oil importer because we don't have oil. Now, it is not like there is a political strategy to buy oil... There is an oil strategy to buy oil... There is a market strategy."
Jaishankar has consistently defended India's continued acquisition of Russian crude oil following the war in Ukraine, even as the US and other Western nations have imposed sanctions on Russian oil. Prior to the conflict, India rarely imported Russian crude due to high freight costs. However, by 2023, Moscow's oil sales to India surged to approximately 1.66 million barrels per day, a significant increase from less than 700,000 in 2022. This made India the largest buyer of seaborne Russian crude after Western countries halted purchases and imposed sanctions.
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In February 2024, Jaishankar also publicly criticised Western nations for their own continued purchases from Russia during the early phases of the Ukraine war. In December 2022, he stated, "I understand that there is a conflict situation (in Ukraine). I also understand that Europe has a point of view and Europe will make the choices it will make that is Europe's right. But for Europe to make choices which prioritises its energy needs and then ask India to do something else..."
He highlighted that Europe was then heavily purchasing crude oil from the Middle East, a traditional supplier for India, which put pressure on prices. Jaishankar emphasised, "I think first we need to establish the facts very clearly. Between February 24 and November 17, the European Union has imported more fossil fuel from Russia than the next 10 countries combined. The oil import in the European Union is like six times what India has imported. Gas is infinite because we do not import it while the European Union imported 50 billions Euros worth (of gas)."
Regarding the war in Ukraine, India's consistent position has been to support any feasible and mutually acceptable solution or format that could lead to the restoration of peace. India has consistently advocated for constructive, solution-oriented, and practical engagement with all stakeholders to achieve a negotiated settlement to the conflict between Russia and Ukraine.
Also Read: Trump slaps 25% tariff and penalty on India starting August 1
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