US Hypocrisy? 50% Tariff On India, Zero On EU That Bought Russian Oil

US President Donald Trump's announcement of 25 per cent additional tariffs on Indian goods triggered immediate diplomatic pushback from New Delhi and raised questions about Western consistency on Russian energy sanctions. 

President Trump has signed an executive order imposing a steep 50 per cent tariff on Indian imports, citing India's continued purchases of Russian oil. India now faces the highest US tariff burden globally, tied with Brazil at 50 per cent. Other nations in the upper bracket include Switzerland at 39 per cent, Canada and Iraq at 35 per cent, and China at 30 per cent.

India's Response

India called the decision "unfair, unjustified and unreasonable," and accused the United States of selectively targeting India for actions that are, in fact, being undertaken by several other countries-including US allies. 

"The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," India's statement read. 

"India will take all actions necessary to protect its national interests." 

On July 30, Trump publicly warned of tariff hikes targeting Indian goods, accusing India of undermining Western efforts to pressure Moscow. 

The US is India's single-largest export market, purchasing $87 billion worth of goods in 2024. In comparison, India imported $41 billion in goods from the US during the same period. That imbalance generated a $46 billion trade surplus in India's favour.

Western Double Standards

India has repeatedly argued that the West is applying sanctions and economic penalties inconsistently. While countries like Hungary (an EU member) continue to import Russian crude through pipelines, India is being penalised for the same. 

Moscow responded to the US move, siding with India and condemning Washington's tariffs.

"Sovereign countries have the right to choose their own trade partners," Kremlin spokesperson Dmitry Peskov told news agency AFP. 

China's Position

While India is facing steep US tariffs, China has thus far avoided comparable penalties despite being the largest consumer of Russian energy.

Chinese imports of Russian oil rose in 2024. Crude oil from Russia made up 21.5 per cent of China's total crude imports, an increase from the 2018-2021 average of 15.5 per cent. This was driven in part by Chinese "teapot" refiners, which are small-scale, privately owned facilities that depend heavily on discounted supplies.

In addition to oil, China also imports large quantities of Russian LNG. According to Chinese customs data cited by news agency TASS, LNG imports from Russia rose 3.3 per cent last year to 8.3 million metric tonnes. There have also been discussions around a major gas pipeline that would carry Russian gas to China but it has not been finalised yet. 

EU Trade with Russia

While the European Union speaks of cutting economic ties with Russia, data shows that its total trade with Russia dropped from 257.5 billion euros ($297.4 billion) in 2021 to 67.5 billion euros ($77.9 billion) in 2024, and key energy imports continued.

The Centre for Research on Energy and Clean Air, a Finnish think tank, estimates that since the 2022 invasion of Ukraine, the EU has paid Russia $105.6 billion for gas alone. This amount equals roughly 75 per cent of Russia's military spending in 2024.

Additionally, EU imports of Russian LNG rose by 9 per cent in 2024 compared to the previous year. Mineral fuels continue to constitute the bulk of the EU's Russian imports, followed by food and raw materials.

According to a report by the Centre for Research on Energy and Clean Air, in June this year, Belgium's purchases of Russian LNG rose by 12 per cent in volume terms month-on-month, totalling EUR 300 mn.

US Trade with Russia

Despite Washington's hardline stance, the US also maintains a limited trade relationship with Russia. In 2024, bilateral trade was worth $5.2 billion -- lower than the $36 billion recorded in 2021 but still significant given the context. The US continues to import Russian chemicals, among other goods.