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Russian Oil Tariff Pulls India Into Geopolitical Contest ‘Not of Its Making’, MEA Tells MPs

On August 6, the White House announced an additional 25% tariff on India, to take effect in 21 days, over its continued import of Russian oil.

Russian Oil Tariff Pulls India Into Geopolitical Contest ‘Not of Its Making’, MEA Tells MPs

Lok Sabha Chamber at the new Parliament building. Image: Wikimedia Commons

The Ministry of External Affairs (MEA) has told a parliamentary panel that the United States’ decision to double tariffs on India over its purchase of Russian oil drags New Delhi into “a geopolitical contest not of its making” and “only serves to erode trust,” even as it underlined that talks with Washington are ongoing.

The remarks were part of a background note prepared by the MEA’s Americas division and circulated to members of the Parliamentary Standing Committee on External Affairs ahead of an August 11 briefing on tariffs by officials from the commerce ministry and the MEA. Titled “firm but constructive,” the section on India’s position conveyed that New Delhi remains hopeful the US will reconsider the punitive measures after further engagement.

The MEA described the move as “based on flawed assumptions” and not reflective of “the realities of global energy markets or India’s sovereign choices.”

On August 6, the White House announced an additional 25% tariff on India, to take effect in 21 days, over its continued import of Russian oil, which Washington claims supports Moscow’s war in Ukraine.

The decision brought the total tariff on India to 50%—the highest rate applied to any country alongside Brazil. While the US had earlier imposed similar “reciprocal” tariffs on China, those remain suspended during ongoing trade talks with Beijing.

The note characterised the measure as a penalty for a conflict in which India has played no role, stating, “India is, regrettably, being drawn into a geopolitical contest that is neither of its making nor one in which it seeks to take sides.” 

Since the start of the Ukraine conflict in February 2022, India has become the second-largest buyer of Russian crude after China, with Russian oil now comprising nearly 40% of its imports.

The ministry reiterated that “imposing unilateral, punitive measures on third countries only serves to erode trust and distort global trade norms,” adding that the decision “underscores an unfortunate persistence of double standards” in parts of the international community.

In its earlier public response, India criticised both the US and the European Union for continuing to import energy and other commodities from Russia while sanctioning New Delhi. It also noted that India was being singled out despite other major buyers operating similarly.

The MEA told MPs that New Delhi remains committed to resolving differences with Washington through “dialogue and mutual respect.”

The note recalled that India was among the first to open discussions with the US this year, when Prime Minister Narendra Modi met then-US President Donald Trump in February, setting a target to double bilateral trade to $500 billion by 2030. It did not, however, provide details on the status of talks since the tariff announcement. Tensions rose further after August 7, when Trump ruled out trade negotiations with India until the tariff issue was settled, though the US State Department insists both sides remain in “full and frank dialogue.” 

A US delegation is scheduled to visit India on August 25 for the next round of bilateral trade treaty negotiations, but the trip’s status is uncertain.

The background note did not reference Washington’s recent outreach to Pakistan following a four-day military clash with India, including a first-ever luncheon meeting between a serving Pakistan military chief and the US President, as well as the conclusion of a trade deal with Islamabad.

Among recent developments in India-US ties, the note cited the April extradition of 26/11 accused Tahawur Rana. It also recorded that, after the April 22 Pahalgam terror attack, the US “took the lead” in securing a UN Security Council press statement—though the final text was reportedly diluted under pressure from Pakistan and China to omit references to The Resistance Front (TRF) and cooperation with India.

Last month, the US State Department designated TRF as both a Foreign Terrorist Organization and a Specially Designated Global Terrorist entity, a move the Indian government described as a significant step.

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