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EYE ON INDIA SEPTEMBER 05, 2025 | The Indian Eye 8

Washington’s Mixed Signals on

India: Russian Oil, Trade Tariffs

and a Fragile Partnership

America’s hot-and-cold response to India’s Russian oil imports and the 50% tariff war reveals deep contra-

dictions in U.S. strategy, exposing both geopolitical anxieties and economic pragmatism.

OUR BUREAU tent, even opportunistic.
For New Delhi, the equation is clear: access to
New Delhi/Washington, DC
affordable energy and protection of domestic pro-
he U.S. relationship with India, often de- ducers outweigh U.S. pressure. Jaishankar bluntly
scribed as a “defining partnership of the 21st described Washington’s tariffs as “unjustified and
Tcentury,” is once again under strain. At the unreasonable,” stressing that India will defend
heart of the turbulence is New Delhi’s decision to its farmers and small manufacturers. Commerce
continue importing Russian oil despite Western Ministry officials acknowledge short-term pain in
sanctions following the Ukraine war. While the sectors like textiles and chemicals but insist the
U.S. has applauded India in recent years as a dem- long-term impact will be limited.
ocratic counterweight to China, Washington’s lat- India’s defiance is not merely economic—it is
est moves—imposing 50% tariffs on Indian goods geopolitical signaling. By refusing to bend, New
and publicly rebuking New Delhi—suggest a sharp Delhi asserts its strategic autonomy, reminding
recalibration. The oscillation between pressure Washington that it will not be a passive ally. Its
and conciliation reflects both political calculations growing energy ties with Russia, and even cautious
in Washington and India’s determination to safe- engagement with China on multilateral platforms,
guard its energy and trade interests. reinforce this posture.
White House Trade Adviser Peter Navarro’s At its core, Washington’s vacillation stems
blunt criticism this week epitomizes Washington’s from three competing impulses. First is geopo-
frustration. He accused India of “indirectly fund- litical urgency—pressuring partners to cut off
ing Russia’s war machine” and urged New Delhi Moscow’s revenue streams. Second is domestic
to “act like a democracy” by siding with the West. politics—Trump’s protectionist tariffs play well
His remarks followed the Trump administration’s to certain voter blocs, even if they disrupt supply
decision to double tariffs on Indian goods, citing chains. Third is strategic necessity—the U.S. can-
India’s Russian oil purchases as justification. not afford to alienate India, a critical partner in
Yet this pressure sits uneasily with reality. In- countering Chinese influence in Asia.
dia argues that it has not breached sanctions, and Thus, America blows hot when Indian ac-
that its purchases are vital to stabilizing global en- tions appear to undercut its sanctions, and cold
ergy markets. External Affairs Minister S. Jaishan- when the costs of alienating New Delhi become
kar reminded critics that Washington itself once apparent. This explains why Navarro and Gra-
encouraged India to buy discounted Russian oil to ham lash out, while Bessent emphasizes eventual
ease supply shocks. From New Delhi’s standpoint, reconciliation.
it is being unfairly singled out, particularly when Despite the noise, both sides are unlikely to
European nations continue importing Russian allow the dispute to spiral into a rupture. India
commodities through indirect routes. remains a vital market for U.S. companies, and
Democrats on the House Foreign Affairs Washington values New Delhi’s role in the In-
Committee openly questioned why India alone External Affairs Minister S Jaishankar calls on do-Pacific. As Bessent noted, “at the end of the
faces such punitive tariffs while China—by far Russian President Vladimir Putin, in Moscow recently day, we will come together.” Yet the episode un-
the largest buyer of Russian oil—escapes similar derscores the fragility of the partnership.
treatment. Their statement that the policy “hurts (@DrSJaishankar X/ANI Photo) For India, the lesson is that U.S. goodwill can
Americans and sabotages the U.S.-India relation- quickly turn coercive when Washington’s broader
ship” highlights the contradiction: punishing India iatory tone, expressing optimism about resolving geopolitical agenda is at stake. For America, the
risks damaging a key strategic partnership while tensions and praising the personal rapport be- risk is that by treating India differently from China
failing to constrain Russia’s revenues. tween Trump and Prime Minister Narendra Modi. or Turkey, it undermines both its moral argument
The mixed messaging from U.S. officials illus- This divergence reflects a deeper strate- and its credibility as a consistent partner.
trates competing priorities. On one side are hawks gic tension. Washington wants India as both a As global energy flows shift and the Ukraine
like Senator Lindsey Graham, who framed India’s trade partner and a geopolitical ally in balancing war drags on, this cycle of pressure and accom-
oil imports as morally complicit in civilian deaths China, but it also demands compliance with its modation may repeat. For now, Washington’s hot-
in Ukraine, warning that countries buying Russian sanctions regime against Moscow. By oscillat- and-cold treatment of India reveals less about New
oil will “face consequences.” On the other side, ing between punitive tariffs and reassurances of Delhi’s choices and more about America’s struggle
Treasury Secretary Scott Bessent struck a concil- partnership, the U.S. risks appearing inconsis- to reconcile values, strategy, and domestic politics.

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