Delhi Counters Trump’s Threat With US Import Spike From Russia Data

Amid a renewed wave of criticism from former U.S. President Donald Trump over India’s trade policies, Indian officials have countered the tariff threat by pointing out a sharp rise in American imports from Russia — a country under sweeping Western sanctions. According to data from the United States International Trade Commission (USITC), U.S. imports from Russia surged by nearly 23% during the January to May 2025 period, with a significant boost in shipments of palladium and uranium.

This development comes at a time when Trump, a frontrunner in the Republican nomination race, has publicly threatened India with “strong penalties” if what he calls “unfair trade practices” continue, particularly concerning oil imports from Russia. However, Indian officials have highlighted that the U.S. itself has been ramping up purchases of critical materials from Russia even amid growing geopolitical tensions.

US Imports From Russia Surge Despite Sanctions

Between January and May 2025, U.S. imports from Russia totaled $1.22 billion, compared to $990 million during the same period in 2024. Much of this increase was driven by imports of palladium — a precious metal crucial for catalytic converters used in automobiles — and enriched uranium used in nuclear power generation. These two commodities alone accounted for over 60% of the total value of U.S. imports from Russia.

Palladium, which is scarce and has few alternative suppliers globally, remains critical for the U.S. automotive and electronics industries. Despite sanctions following Russia’s invasion of Ukraine in 2022, palladium was never fully restricted due to its strategic importance. Similarly, uranium continues to flow into the U.S. to meet the demands of its nuclear reactors, especially as the country aims to diversify from fossil fuels.

The USITC data further underscores that U.S. imports of enriched uranium from Russia grew by 34% during the five-month period, while palladium imports rose by 19%. This data contradicts the public posturing by certain American politicians who advocate a complete economic decoupling from Russia.

India’s Position: Transparency and Pragmatism

In response to Trump’s remarks, Indian officials have stressed that their oil imports from Russia have always been transparent, market-driven, and in line with national energy security needs. India, the world’s third-largest oil importer, has increased purchases of discounted Russian crude over the past two years. However, Indian diplomats argue that these purchases help stabilise global oil prices and are comparable to what many Western countries — including the U.S. — are doing under less media scrutiny.

An official from the Ministry of External Affairs noted, “It’s important to view energy trade in a holistic manner. Countries make strategic decisions based on cost, availability, and reliability. Singling out India while overlooking rising imports from Russia into the U.S. raises questions of fairness and consistency.”

India has also emphasized that its relationship with Russia is not limited to energy, but is based on long-standing strategic, defense, and scientific cooperation. New Delhi has been firm in its policy of “strategic autonomy” — balancing relations with both the West and Russia without aligning completely with either side.

Trump’s Tariff Rhetoric: Echoes of the Past

Donald Trump’s recent comments are reminiscent of his trade war strategy during his first presidential term (2016–2020), where he frequently used tariffs as a tool to pressure countries including China, Mexico, and even U.S. allies in Europe and Asia. At a campaign event in Ohio last week, Trump said, “If India continues to buy oil from Russia and take advantage of our generosity, we will impose strong penalties — believe me, they won’t like it.”

While the Biden administration has refrained from echoing such rhetoric, Indian analysts believe Trump’s remarks could indicate a return to more aggressive protectionist trade policies if he returns to office. Experts also suggest that such statements are aimed more at domestic audiences rather than representing concrete policy positions.

Double Standards and Global Trade Realities

Observers in New Delhi have pointed out the inconsistency in the U.S. narrative on Russia. While the West continues to pressure countries like India to reduce their economic ties with Moscow, the U.S. itself is making strategic exceptions when it comes to materials essential to its own industries.

For instance, although the U.S. has imposed sanctions on various Russian banks and energy companies, it has continued to allow uranium imports for fear of disrupting its nuclear energy sector, which accounts for nearly 20% of the country’s electricity production. The U.S. depends on Russian enrichment services for about 20% of the fuel used in its civilian reactors.

Moreover, despite the push for electric vehicles and green energy, metals like palladium and nickel — where Russia is a dominant supplier — remain vital to American supply chains.

This selective enforcement of sanctions, Indian officials argue, reveals the underlying complexities and hypocrisies of global trade policy in times of geopolitical conflict.

India’s Trade Expansion: Diversifying Partnerships

Meanwhile, India continues to expand its trade relationships globally, including with the U.S. In 2024, bilateral trade between India and the U.S. hit a record $192 billion, with both countries increasing cooperation in defense, semiconductors, pharmaceuticals, and digital services.

India has also signed multiple Free Trade Agreements (FTAs) with partners in Europe and Southeast Asia and has positioned itself as a viable alternative to China in global manufacturing supply chains. Officials say that attempts to paint India as overly reliant on Russia ignore the broader diversification of its trade and diplomatic engagements.

 A Complex Game of Trade and Politics

The recent data from USITC not only weakens Trump’s claims but also brings to light the intricate web of global trade, where strategic interests often trump ideological positions. As the U.S. heads toward its 2024 presidential election, India will likely continue to face scrutiny from American politicians seeking to project strength on the world stage.

However, with both countries sharing long-term strategic goals, experts believe cooler diplomatic channels will prevail. For now, India’s response — pointing directly at U.S. trade numbers — serves as a firm, fact-based rebuttal to Trump’s threats and signals that New Delhi is not willing to accept a narrative of one-sided compliance.