The Biden White House is intensifying its calls for India to step away from Russian oil, arguing that New Delhi’s continued purchases are frustrating global efforts to isolate Moscow and directly funding Russia’s war in Ukraine.
Top officials have moved swiftly to pressure India amidst rising trade tensions, framing the oil trade as a defining issue for the future of US-India relations.
This sudden escalation comes as the US recently imposed record-high tariffs on Indian goods, singling out energy imports tied to Russia. New Delhi now faces combined duties of up to 50% on certain exports, a move India has decried as unfair and disruptive to its economy.
The US Case: Funding the War Machine
White House trade adviser Peter Navarro led the charge, warning that India’s acquisition of Russian crude gives Moscow vital financial resources.
Navarro wrote that India has become a “global clearinghouse” for Russian oil, converting embargoed crude into profitable exports and enabling the Kremlin’s military campaign in Ukraine.
According to Navarro, these sales undermine years of diplomatic work between Washington and New Delhi.
US President Donald Trump echoed Navarro’s stance, calling India the “maharaja of tariffs” and defending new trade penalties as a national security measure.
Trump asserted that energy deals funnel American dollars spent on Indian goods back to Russia, directly supporting Russian military operations.
This rationale drove the latest round of tariffs, which target Indian exports and are among the toughest levied against any US trading partner.
Did you know?
India’s Russian oil imports have risen from just 3% of its supply in 2021 to over 35% in August 2025.
Tariffs and Cancelled Talks Raise the Stakes
The US administration has cancelled a previously planned visit to New Delhi by trade negotiators, stalling talks over a major trade agreement and dashing Indian hopes for tariff relief.
Details from the White House signal that further secondary tariffs are possible if India does not curb Russian oil imports.
Indian officials have strongly rejected the new tariffs, maintaining that their energy deals are based on pure economic necessity and insisting that ties with the US go beyond trade policy alone.
Despite the rising costs and diplomatic consequences, Indian refiners show little sign of backing down. August saw record levels of Russian crude imports, indicating New Delhi's determination to put energy security and a low-cost supply ahead of US demands.
Industry leaders assert that there is "no pause" in Russian shipments and that market conditions strictly guide decisions.
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Strategic Partnership or Strategic Dilemma?
Underlying the pressure campaign is a sense of strategic unease in Washington. Navarro and others caution that India’s closer ties with Moscow and with Beijing could erode trust and complicate military cooperation, especially as the US weighs new weapons sales to India.
While New Delhi stands firm, some analysts warn that the long-term US-India partnership may be at risk if current tensions continue to spiral.
As the situation develops, both sides are navigating tricky terrain: balancing national interests, strategic alliances, and the unpredictable ripple effects of oil, war, and global security.
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