US Vice President Explains Tariffs on India: How the Russia-Ukraine War Triggered the Decision
- byPranay Jain
- 25 Aug, 2025
US Vice President JD Vance has said that President Donald Trump’s decision to impose tariffs on India is directly linked to the ongoing Russia-Ukraine war. According to him, the move aims to reduce Russia’s oil revenues, weaken its economy, and pressure Moscow into peace negotiations.
The Tariff Decision
From 27 August, the US will impose a 50% tariff on Indian goods, of which 25% is a penalty specifically for India’s purchase of Russian oil. Washington argues that India’s continued imports are helping Moscow sustain its war against Ukraine.
This decision has heightened trade tensions between New Delhi and Washington.
India’s Stand on Russian Oil
India has consistently defended its decision to import oil from Russia, calling it a matter of national interest. After the Ukraine war broke out in February 2022, Western nations stopped buying Russian oil and imposed sanctions. India, however, seized the opportunity to purchase Russian crude at discounted rates, which helped cushion its economy against global price shocks.
External Affairs Minister S. Jaishankar has been vocal in rejecting US criticism. He recently said:
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“It is absurd for a pro-trade US administration to accuse others of doing trade.”
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“If you don’t want to buy oil or refined products from India, then don’t buy. No one is forcing you.”
He further explained that India’s purchases have been stabilizing global oil markets: “We buy Russian oil not only in our national interest but also to calm markets worldwide.”
Why the US Believes Oil Sales Help Russia
The US maintains that revenues from oil exports are funding Russia’s war machine. When asked why Washington hasn’t announced fresh sanctions on Russia, Vance said:
“Trump has tried to pressure Moscow towards peace talks through tariffs. If Russia stops killing, it can rejoin the world economy. If not, it will remain isolated.”
The Larger Picture
India’s position is that it is balancing national energy security with global market stability, while the US sees New Delhi’s actions as undermining sanctions on Russia. This latest tariff escalation highlights a widening rift in US-India trade relations—one that could reshape global energy politics in the months ahead.






