Why is Trump threatening India over Russian oil? Here’s the real reason
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Why is Trump threatening India over Russian oil? Here’s the real reason
At the core of Trump’s campaign is a push to boost American consumer. At the time, the US had supported India’s purchases to stabilise global markets. It also pointed out that the EU was significantly larger than India’S, and the US continues to redirect India�s national security. It is a matter of time before a company is forced to make a decision about whether or not it wants to invest in a company. The company is not only buying a company, it is also buying a nation. It’s also buying the nation’s security, as well as a nation’s reputation. It has also bought the country’s reputation for being a good place to start a business. And it has bought the reputation of the country it is buying from. The country it’s buying from is also the country that it is based in. It could be the nation that it’s based in, or even the U.S.
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On the surface, it reads like outrage. But Trump’s threat to slap higher tariffs on Indian goods isn’t just about Ukraine, or even Russia. It’s actually about shielding US oil interests, redirecting energy trade, and flexing economic muscle over strategic partners.
WHY INDIA LOVES RUSSIAN OIL
Since the Ukraine war began, India has become one of Russia’s biggest energy buyers. Between January and June 2025, Indian refiners purchased over 1.75 million barrels of Russian crude per day—covering nearly 36-40% of the country’s total oil demand.
The move has helped India manage inflation and cut import bills, even as it drew criticism in Washington. The irony? Back in 2022 and 2023, US officials had privately nudged India to keep buying Russian oil to “ensure global price stability.” That line has now disappeared.
REAL REASON WHY TRUMP IS UPSET
At the core of Trump’s pressure campaign is a push to boost American oil exports. His campaign is backed heavily by US fossil fuel giants, and his latest tax package offers nearly $18 billion in new incentives for the oil and gas sector, per The New York Times.
India is already a rising customer. US crude shipments to India surged over 50% in the first half of 2025, now making up 8% of India’s oil imports, according to the US Energy Information Administration.
The more India leans toward American oil and LNG, the more it strengthens US energy clout, and helps Trump’s backers profit.
TRUMP USING TARIFFS AS BARGAINING CHIPS
Trump’s tariff warning isn’t just about punishing India for its energy choices. It’s leverage.
The US takes in nearly a fifth of India’s exports. A tariff hike would strike at key sectors—textiles, pharmaceuticals, auto parts, and electronics. Analysts say Trump is using tariffs not as a blunt-force weapon, but as a calculated tool to redirect India’s trade and energy priorities.
WHAT IT MEANS FOR INDIA?
If India is forced to slash Russian oil imports and pivot to costlier alternatives, its annual crude bill could climb by $11 billion, say experts. That would feed into inflation and hit growth.
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Simultaneously, if Trump’s tariff threat materialises, India’s export sectors could take an $18 billion annual hit, cutting into margins, raising prices, and endangering jobs across small and mid-sized firms.
INDIA’S POSITION
The Ministry of External Affairs (MEA), responding to Trump’s remarks, said India turned to discounted Russian oil after traditional suppliers shifted exports to Europe. At the time, the US had supported India’s purchases to stabilise global markets.
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation,” the MEA said. It also pointed out that the EU’s trade with Russia in 2024 was significantly larger than India’s, and the US continues to import uranium, palladium, and fertilisers from Russia.
India, the MEA asserted, will act in accordance with its national interest, and efforts to single it out ignore broader trade realities. Its energy choices are based on economic security and pragmatic diplomacy.
Therefore, Trump’s playbook blends oil politics with trade pressure. His latest warnings reflect not just anger at Moscow, but America’s wider push to redraw energy alliances and corner strategic influence.
Trump’s warning is less about Moscow and more about Washington’s desire to redraw energy alliances. By linking oil and tariffs, he’s drawing a hard line, one aimed at securing economic advantage, not defending global norms.
– Ends
Published By: Koustav Das Published On: Aug 5, 2025