Kremlin Slams US Tariff Threats on India Over Russian Oil Trade, Calls Them “Illegal and Coercive”

 

In a sharp rebuke to recent statements made by former US President Donald Trump, the Russian government has condemned Washington’s pressure tactics against sovereign nations like India over their trade with Moscow. The Kremlin described such threats as “illegal” and a violation of international norms, asserting that countries are free to choose their own economic and strategic partners without fear of reprisal.

The diplomatic escalation comes just a day after Trump, in a controversial statement, warned of revised and significantly higher tariffs on Indian exports to the United States. The move, he said, was in response to India’s continued import of Russian oil and military goods, which he argued fuel Russia’s military campaign in Ukraine.

Kremlin Condemns “Coercive Diplomacy”

Reacting to Trump’s remarks, Kremlin spokesperson Dmitry Peskov categorically stated that “trying to force countries to stop trading with Russia is illegal.”

He further added that Russia views such threats not as policy tools, but as direct political and economic intimidation tactics.

We hear many statements that are, in fact, threats—attempts to force countries to cut trade ties with Russia,” Peskov told reporters. “We do not consider such statements to be lawful under any international framework.”

He stressed that sovereign nations have the fundamental right to pursue trade and economic partnerships that align with their national interests. “Countries should not be coerced or bullied into breaking off legitimate trade relations,” he added.

Peskov’s comments underscore Moscow’s broader concerns about what it sees as Washington’s efforts to weaponize economic interdependence in pursuit of geopolitical goals.

He reaffirmed that Russia would continue to strengthen its economic ties with strategic partners like India and China, despite mounting Western pressure.

Trump Threatens India with Tariff Hike

The controversy erupted after Trump, in a strongly worded social media post on Monday, accused India of profiting from the ongoing Ukraine war by buying Russian oil at discounted prices and allegedly re-exporting some of it on global markets.

India is not only buying massive amounts of Russian oil, but 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 wrote.

“Because of this, I will be substantially raising the tariff paid by India to the USA,” he added.

Trump also claimed that India imposes the highest tariffs in the world on American goods, which he vowed to counter by hiking US tariffs on Indian exports to more than the current 25 percent, effective from August 1.

India Responds Firmly: “Unjustified and Unreasonable Targeting”

In response, the Indian Ministry of External Affairs (MEA) issued a strongly worded statement defending the country’s independent foreign policy and trade practices.

The government slammed the US for what it termed as “discriminatory and inconsistent” foreign policy, especially when Western nations themselves continue to engage with Russia in various sectors, including energy.

The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary steps to safeguard its national interests and economic security,” the MEA stated.

The statement also underscored that India’s energy purchases are based on affordability and national interest, and not driven by geopolitical alliances. Officials emphasized that New Delhi has consistently acted by international law and has never violated any global sanctions framework.

Economic Fallout Looms Amid Rising Trade Tensions

Trump’s threat of escalating tariffs has already triggered ripples in financial markets and policy circles. Indian ratings agency ICRA has revised India’s FY26 GDP growth forecast down from 6.2% to 6.0%, citing uncertainty in trade policy and growing friction with the United States, India’s largest export destination.

Several Indian export-driven sectors — including textiles, auto components, chemicals, and gems and jewellery — are considered vulnerable to any steep tariff hike.

However, other sectors like pharmaceuticals, petroleum products, and telecom instruments may be relatively shielded, at least in the short term. Pharmaceuticals alone account for over 37% of India’s exports to the US and have so far remained outside tariff considerations.

Strategic Implications: A Widening Rift or Temporary Tensions?

The rising friction between Washington and New Delhi poses a serious question for the future of Indo-US strategic relations, particularly in the context of counterbalancing China’s influence in the Indo-Pacific.

While both countries have historically deepened defense, technology, and people-to-people ties, trade irritants such as these risk casting a long shadow over the broader bilateral relationship.

The Kremlin’s intervention — coming amid these rising tensions — reflects how the Russia-India trade corridor is emerging as a flashpoint in global geopolitics, particularly in the wake of the prolonged Ukraine conflict.

As the world watches closely, it remains to be seen whether diplomacy will prevail or whether a new trade war front is opening between two of the world’s largest democracies.


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