India terms US move “unfair and unjustified” as Washington cites national security concerns.
US Raises Tariffs on Indian Imports Amid Oil Policy Concerns
Washington/New Delhi: United States President Donald Trump has signed an Executive Order increasing tariffs on Indian goods from 25% to 50%, citing India’s continued purchase of Russian oil as a matter of concern. The White House stated that the move was prompted by “national security and foreign policy interests.”
The revised tariffs will take effect 21 days from the date of the order and apply to a broad range of goods imported from India, except those already in transit or covered by exemptions. The decision marks a significant development in the ongoing conversation around trade, energy policy, and geopolitical alignments.
India Calls Tariff Decision Unfair and Unjustified
India’s Ministry of External Affairs (MEA) expressed disappointment over the decision, describing it as “unfair, unjustified, and unreasonable.” In its official response, the MEA said that India’s oil import policy is based on national interest and energy security needs.
“Our energy decisions are guided by market dynamics and the developmental requirements of our citizens. We do not believe such unilateral measures are conducive to long-term bilateral cooperation,” the statement read.
India added that it will take “necessary steps” to safeguard its economic interests, without specifying if retaliatory tariffs are being considered.
Opposition Voices Concern Over Trade Impact
Several opposition leaders in India have reacted to the tariff increase, calling for a calibrated response from the government. While criticising the timing and scale of the move, they urged the Union Government to engage diplomatically to resolve the issue.
Congress MP Shashi Tharoor highlighted the potential economic impact, warning that Indian exporters may face competitive disadvantages in the US market compared to other countries with lower tariffs.
“We must look to diversify our export destinations and accelerate trade negotiations with other strategic partners,” he said.
Other leaders, including members of the Shiv Sena (UBT) and Trinamool Congress, also questioned the government’s preparedness in dealing with rising global trade uncertainties.
Trade and Strategic Context
The US has previously raised concerns about India’s energy trade with Russia, particularly since the beginning of the Ukraine conflict. India, however, has maintained that its oil purchases are legitimate, transparent, and aligned with its national priorities.
The new tariffs reflect broader shifts in US trade policy under President Trump, who has repeatedly emphasised “America First” economics and taken a firm stance on countries engaging in trade with Russia. Similar tariff measures have been applied to other nations in the past.
Diplomatic Engagement Expected
While the Executive Order outlines strict measures, it also leaves room for future flexibility. Officials from both sides are expected to engage in dialogue to explore options for resolving the issue without further escalation.
India and the US have enjoyed strong trade and strategic ties in recent years, with collaboration across defence, technology, education, and clean energy. Analysts note that while this development is a setback, it may be addressed through diplomatic engagement and trade talks.
Looking Ahead
As both countries navigate complex global challenges, including energy security and supply chain stability, the focus will likely shift to managing tensions while preserving the broader framework of cooperation.
India has indicated that it remains committed to constructive dialogue, even as it reiterates its sovereign right to define its trade and energy policies.
With the global economic environment becoming increasingly unpredictable, observers say sustained diplomacy and multilateral engagement will be key to preventing long-term disruption in India-US relations.
