India Defies U.S. Pressure, Continues Russian Oil Purchases Despite Tariffs

New Delhi doubles down on discounted crude—economics trump geopolitics every time.

The Energy Gambit

India keeps snapping up Russian oil barrels despite mounting U.S. tariffs and diplomatic pressure. Cheaper imports trump political friction—simple math for a nation fueling explosive growth.

Market Realities

Cheap energy fuels expansion. New Delhi won’t sacrifice economic momentum for Western preferences. They’re playing the long game—and saving billions doing it.

Global Ripples

This isn’t just about oil. It’s a power shift—emerging economies rewriting the rules while traditional alliances strain. Watch who follows suit.

Bottom line: When dollars talk, morals take a coffee break—especially in energy markets.

Trump imposes tariffs and warns India over Russia ties

Speaking to Bloomberg Surveillance, U.S. Commerce Secretary Howard Lutnick criticized India’s oil deals and called for renewed trade negotiations. Lutnick said, “Either support the dollar, support the United States of America, support your biggest client – who’s the American consumer – or, I guess, you’re going to pay a 50% tariff. And let’s see how long this lasts.” He said India would likely return in one or two months, apologize, and ask to reopen talks with Washington.

India isn’t budging. Sitharaman explained that the country spends a large portion of its foreign exchange on energy. She said, “Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs, whether in terms of rates, logistics, anything.” Crude oil and refined fuel purchases accounted for about one-fourth of India’s imports in the fiscal year ending March 2025.

At the same time, trade relations between India and the U.S. have collapsed. Talks aimed at reducing the American tariff burden on Indian exports fell apart. A planned visit by U.S. trade officials to New Delhi last month was canceled, and there have been no follow-up meetings or discussions since.

As economic discussions stalled, diplomatic optics took center stage. Indian Prime Minister Narendra Modi attended a summit in Tianjin this week hosted by Chinese President Xi Jinping. Russian President Vladimir Putin was there too. 

The three leaders were seen together, standing side by side in front of media cameras. Modi and Putin were even photographed holding hands as they walked toward Xi.

Trump slams India and Russia for meeting with Xi in China

Trump responded publicly, writing on social media, “Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” The message was posted alongside the photo from the summit. Trump also told reporters this week that he was “very disappointed” in Putin but was not concerned about Russia’s growing ties with China.

India’s foreign ministry declined to respond. Reporters in New Delhi were told there would be no comment on Trump’s remarks. Modi didn’t react to the statements either, as usual. But his appearance alongside Xi and Putin was so geopolitically powerful that he doesn’t need to say anything else.

Some analysts described the Tianjin meeting as a show of unity among countries distancing themselves from the West. It included leaders from North Korea and Myanmar. Modi’s participation, after tensions with Trump’s administration, was seen by some as a direct message to the U.S.

Trump, who once courted New Delhi as a key partner, has now cooled ties. His administration’s reaction to India’s energy strategy, along with rising tariffs and diplomatic silence, has pushed the two countries further apart.

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