Donald Trump's move to impose 25% tariffs on Indian goods due to continued Russian oil imports has considerably changed US-India relations. Trump sharply criticized India for being one of the largest buyers of Russian energy, especially as calls mount for countries to cut support for Russia.
By 2024, India was importing 2 million barrels of Russian oil daily, up from 68,000 before the war. Around 80% of this oil is refined and re-exported, including to Europe, raising tension with Western partners.
Alongside US action, the EU has introduced restrictions banning imports of oil products made from Russian crude. The combined US and EU sanctions deliver a double blow to the Indian economy.
India firmly rejected the criticism, vowing to defend its national interests. Prime Minister Modi used the situation to boost nationalist sentiment and the Make in India campaign, arguing energy security and strategic autonomy for 1.5 billion people are paramount.
Reactions within the US are mixed: right-leaning media supported Trump's measures, while some politicians seek to balance America First with cooperation among allies.
Financial pressure, dollar restrictions, and potential harm to India's IT and pharmaceutical exports create serious risks. Nonetheless, India remains a key strategic player as it seeks to diversify energy supplies and maintain foreign policy independence.
The development of this trade conflict and India's response will be crucial in shaping the future power balance between the US, East, and West.
