New Delhi [India], August 4 (ANI): U.S. President Donald Trump’s decision to impose higher tariffs on India over its Russian oil imports is “factually incorrect and misleading,” according to the Global Trade Research Initiative (GTRI). The think tank stated that India’s energy trade decisions are rooted in commercial logic and national interest, while noting that China remains the largest importer of Russian oil.
Ajay Srivastava, Founder of GTRI, strongly refuted Trump’s claims made on his social media platform Truth Social. “Mr. Trump’s decision to raise tariffs on India citing oil trade is not only unjustified—it ignores market realities, misrepresents trade data, and undermines a key strategic partnership in the Indo-Pacific,” he said.
Srivastava emphasized that India does not export crude oil—Russian or otherwise.
“India is a net importer of crude oil, and its global exports of crude stand at zero. What India does export are refined petroleum products—including from Russian oil—such as diesel and jet fuel, after processing crude oil in its refineries, just like many other energy-importing countries,” he clarified.
He also pointed out that China—not India—is the top buyer of Russian oil. In 2024, China imported $62.6 billion worth of Russian oil compared to India’s $52.7 billion.
“But Mr. Trump appears unwilling to criticize China, perhaps because of geopolitical calculations, and instead targets India unfairly,” Srivastava added.
The GTRI founder asserted that India’s increased oil trade with Russia took place transparently and was aligned with global market stabilization efforts after Western sanctions disrupted supply chains.
“One of the key reasons India stepped up Russian oil purchases was to help stabilize global oil markets. By maintaining diversified and affordable energy access, India contributed to preventing a global oil price shock,” he explained.
Trump’s tariff hike announcement follows his imposition of a 25 percent reciprocal tariff on Indian goods and an unspecified penalty for importing Russian oil.
“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump claimed in his post.
India’s Ministry of External Affairs has defended the country’s sovereign right to manage its energy policy.
“You are aware of our broad approach to energy sourcing requirements, that we look at what is available in the market and the prevailing global situation,” MEA Spokesperson Randhir Jaiswal said. He added that India’s ties with any nation are based on their own merit and should not be viewed through the prism of a third country.
Srivastava further noted that Indian oil refineries, both public and private, operate independently and base their procurement decisions on commercial factors such as pricing, supply stability, and regulatory considerations.
“For example, while India exported diesel and aviation turbine fuel (ATF) to the EU in FY2025, those exports will now stop due to the EU’s ban on products refined from Russian crude. Indian refiners will naturally shift sourcing based on such market shifts,” he said.
In fact, India’s imports from Russia in May 2025 were down by 9.8% year-on-year, totaling $9.2 billion. This shows a clear responsiveness to evolving geopolitical and commercial factors.
There are broader concerns that forcing India to halt Russian oil imports could lead to a global price surge, potentially pushing crude oil prices to as high as USD 200 per barrel—posing a serious risk to global energy security and consumer costs.
Trump’s tariff threats come at a time when both nations were exploring an interim trade deal aimed at reducing friction and enhancing strategic ties. The new tariffs may now complicate that path. (ANI)
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