US Accuses India of Fueling Russia’s War Effort: Tariffs Imposed
Washington, August 4, 2025 — Tensions between the United States and India have intensified after White House Deputy Chief of Staff Stephen Miller stated that India is indirectly sponsoring the war in Ukraine through its continued oil trade with Russia. According to Miller, President Donald Trump views this policy as “unacceptable” and is taking steps to apply economic pressure, including raising tariffs on Indian imports.
In a post on Truth Social, Trump asserted that India is profiting from the war by buying discounted Russian crude oil and reselling refined products—often to European markets—thereby indirectly funding Russia’s military operations.
India’s Energy Strategy Fuels a Geopolitical Rift
Since 2022, India has dramatically ramped up its Russian oil imports, with Russian crude now accounting for nearly 40% of India’s total oil supply. While this helps stabilize domestic prices, it also strengthens Russia’s economy and its capacity to continue the war.
Analysts warn that if India is forced to pivot away from Russian oil, its import bill could surge by $9–11 billion annually, leading to higher domestic inflation and shrinking refinery margins.
Washington’s Economic Response
The Trump administration has implemented a 25% tariff on a broad range of Indian goods starting August 1, including pharmaceuticals, textiles, and machinery. Trump has threatened to increase the rate up to 100% if India doesn’t halt Russian oil imports by August 8, 2025 (source).
Privately, officials are also discussing potential secondary sanctions targeting Indian oil traders involved in processing or transshipping Russian crude, which would further limit India’s ability to hedge supply contracts.
India’s Defiant Stance
While Delhi has yet to issue a formal response, internal government sources indicate that India has no plans to abandon Russian oil. Prime Minister Narendra Modi continues to champion energy independence under the “Make in India” initiative, despite growing Western pressure.
India’s refiners have reportedly received instructions to maintain contracts with Russian suppliers, and the government is even exploring new infrastructure routes, including pipelines through Iran, to ensure continuity of imports.
Shifting Geopolitical Alignments
Western analysts warn that India’s ongoing partnership with Moscow could have lasting consequences. Washington is already strengthening ties with India’s regional rival, Pakistan, including signing a new oil and logistics cooperation agreement in the Indian Ocean corridor.
Additionally, India’s interest in the South Korean KF-21 Boramae fighter jet may face delays or cancellation under U.S. pressure, potentially stalling a key defense diversification project (source).
Western Experts React
Commentators from The Washington Post describe Trump’s approach as a strategic maneuver designed to “rattle the cage before cutting a deal”. One analyst noted that “tariff diplomacy is not about severing ties—it’s about raising the stakes before negotiations.”
Economists say this pressure aligns with a new doctrine that demands geopolitical alignment from major trade partners. In this emerging global order, neutrality is no longer seen as a viable position.
Conclusion
As the war in Ukraine drags on, India finds itself at the center of a transcontinental power struggle. While New Delhi insists on protecting its energy sovereignty, Washington is making it clear that economic partnerships now come with geopolitical expectations. The future of U.S.–India relations may hinge on whether India chooses long-term strategic autonomy—or recalibrates to align with the demands of the evolving global order.
