
5. Tariffs Won’t Bend Us: Modi’s Firm Stand Preserves India-Russia Axis
Tariff Threat Fails to Break Russia Alliance – In a dramatic escalation of trade and geopolitical tensions, U.S. President Donald Trump has imposed a 25% tariff on Indian imports and threatened an additional undefined penalty over New Delhi’s continued energy and defense ties with Russia. But India, rather than flinching, has responded with calm resolve, reaffirming its time-tested ties / partnership with Russia and asserting its sovereign right to pursue strategic relationships based on national interest.
This unfolding episode is more than a diplomatic spat, it’s a revealing moment in the global power play between economic priorities, strategic autonomy, and shifting alliances. Let’s unpack the layers behind India’s response, the implications of Trump’s move, and what this means for the future of Indo-U.S. relations.
Table of Contents
The Trigger: Energy and Arms Ties with Russia
India’s energy and defense relationship with Russia is decades old. From oil imports to military hardware, Russia has long been a reliable partner. According to the Stockholm International Peace Research Institute, Russia accounted for 36% of India’s arms imports between 2020 and 2024, down from 55% in the previous period. Despite diversification efforts, Russia remains a key supplier of spare parts and maintenance for India’s existing arsenal.
On the energy front, India has emerged as one of Russia’s largest buyers of crude oil, especially since Western sanctions pushed Moscow to seek alternative markets. For India, these purchases are driven by economic pragmatism—affordable energy is essential for a growing economy and a population of over 1.4 billion.
Trump’s criticism centers on these ties, accusing India of indirectly supporting Russia’s war in Ukraine. He declared that India and China are “Russia’s largest buyers of energy” and warned of a penalty for continuing such trade.
India’s Response: Strategic Autonomy and Sovereignty
India’s Ministry of External Affairs (MEA) swiftly responded to Trump’s remarks, emphasizing that bilateral relationships are guided by national interests and should not be viewed through the lens of third-party expectations.
“India and Russia have a steady and time-tested partnership,” said MEA spokesperson Randhir Jaiswal, adding that defense sourcing is determined by national security imperatives and strategic assessments.
India’s stance reflects its long-held principle of strategic autonomy, the idea that foreign policy decisions are made independently, without succumbing to external pressure. This approach has allowed India to maintain cordial ties with both the U.S. and Russia, even when their interests diverge.
Trade Fallout: Tariffs and Penalties
Trump’s announcement of a 25% tariff on Indian imports is a significant blow to bilateral trade, which reached $128 billion in 2024, making the U.S. India’s largest export market. The penalty—still vaguely defined—adds a layer of uncertainty and could potentially include secondary sanctions targeting Indian companies involved in Russian trade.
This move comes after months of stalled trade negotiations. Despite Prime Minister Narendra Modi’s high-profile visit to the White House in February and India’s efforts to reduce tariffs and offer concessions, talks faltered over agriculture and market access.
Trump’s rhetoric has shifted from optimism about a “very big” trade deal to frustration over India’s “strenuous and obnoxious” trade barriers. He even suggested that India might one day buy oil from Pakistan—a comment dismissed by Indian officials as speculative and irrelevant.
Strategic Balancing Act: Between Washington and Moscow
India’s challenge is to balance its growing partnership with the U.S., which includes defense cooperation, technology transfers, and shared democratic values, with its historic ties to Russia, which remain vital for defense readiness and energy security.
Former Indian Defence Secretary G Mohan Kumar highlighted concerns about U.S. military equipment, noting that Washington often restricts access to source codes and operational controls. This limits India’s ability to maintain operational independence, a key reason why Russian systems remain attractive.
“Procurement decisions must depend on India’s own threat perceptions and national security needs, not just because somebody is pressuring us to buy,” Kumar said.
India has also increased arms purchases from the U.S. and France, signaling a diversification strategy rather than a pivot away from Russia.
Global Reactions: Russia, BRICS, and the Dollar
Russia has slammed Trump’s threats, accusing him of “planting a time bomb” in global diplomacy. Moscow views the penalty as an attempt to fracture BRICS, a bloc that includes Brazil, Russia, India, China, and South Africa and undermine efforts to create alternatives to Western-dominated financial systems.
Trump, in turn, has criticized BRICS as “anti-U.S.” and accused India of participating in an “attack on the dollar”. These comments reflect broader anxieties about the emergence of multipolarity, where countries like India seek to navigate global affairs without being tethered to any single power.
What’s at Stake: Sovereignty vs. Sanctions
India’s refusal to bow to Trump’s pressure is a statement of sovereignty. It underscores the country’s commitment to making decisions based on domestic priorities, not foreign ultimatums.
At stake are:
- Energy security: Affordable oil is crucial for India’s economy.
- Defense readiness: Russian systems remain integral to India’s military.
- Trade relations: Tariffs could hurt Indian exporters and derail future deals.
- Geopolitical alignment: India must maintain balance between East and West.
India’s measured response also signals confidence in its global standing. As a rising power, it is no longer content to play second fiddle in international negotiations.
Trump’s Tariff Threat Fails : The Road Ahead
Trump’s tariff and penalty threats may be aimed at isolating Russia, but they risk alienating India, a key strategic partner in the Indo-Pacific. India’s firm stance on its Russia ties reflects a broader shift toward multipolar diplomacy, where countries assert their interests without being drawn into binary alliances.
As the dust settles, the world will watch how India navigates this complex terrain. Will it recalibrate its energy imports? Will trade talks with the U.S. resume? Will BRICS emerge stronger or splinter under pressure?
One thing is clear: India’s “time-tested” ties with Russia are not easily shaken, and its commitment to strategic autonomy remains unwavering.
Modi Government Responds to Trump Tariff Shock of 25%: “Will Take All Necessary Steps”
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