Defense trade between India and Russia, which irritated Donald Trump... imposed 25% tariff
Trump 25% tariff on India: The defense trade between India and Russia is worth $2-3 billion annually, which includes deals like S-400, Sukhoi Jet, T-90 tank and Brahmos missile. This trade is important for India's defense and geopolitics, but the news of Trump imposing 25% tariff has put it in danger. Trump wants to weaken Russia in the Ukraine war. Due to his he is putting pressure on countries like India and China.
Also Read: Tariff on India: America imposed 25% tariff on India, also announced to collect penalty
Defense trade between India and Russia
US President Donald Trump is angry with the growing trade between India and Russia, especially oil and defense deals. He has threatened to impose a big tariff on countries like India and China that trade with Russia. This tariff can affect India's exports like pharmaceuticals, textiles and IT. A 25% tariff has also been imposed on India.
India-Russia Defense Trade
The defense relationship between India and Russia is decades old. Meanwhile Russia has been India's largest and most trusted arms supplier. India has been buying arms from Russia (then Soviet Union) since the 1960s. Even today, a large part of the weapons and equipment used in the Indian Army comes from Russia. Some key figures and deals are as follows...
Volume and share
According to the Stockholm International Peace Research Institute (SIPRI), 49% of India's total arms imports between 2019-2023 came from Russia.
India-Russia defense trade is worth $2-3 billion (about Rs 16,000-24,000 crore) annually, which is a major part of India's total defense imports.
In 2024-25, the total bilateral trade between India and Russia was $68.7 billion.
Big defense deals
>S-400 missile defense system: In 2018, India signed a deal to buy 5 S-400 systems from Russia, worth $5.43 billion (about Rs 43,000 crore). Its delivery has started from 2021.
>MiG-29 and Sukhoi-30 MKI jets: The Indian Air Force has more than 260 Sukhoi-30 MKI jets, which have been purchased from Russia. Apart from this, fighter planes like MiG-29 and MiG-21 have also come from Russia
>T-90 tanks: The Indian Army has more than 1,000 T-90 tanks, which have been purchased from Russia. Their value is in billions of rupees.
>Weapons for the Navy: Russia has given India Kilo-class submarines, Talwar-class frigates and BrahMos missiles (made in collaboration with Russia).
>AK-203 rifles: In 2019, India signed a deal to buy 7.5 lakh AK-203 rifles from Russia, of which 70,000 will come from Russia. The rest are being made in India. It costs around $1 billion.
There are two main reasons for Donald Trump's anger..
Russia-Ukraine war and oil trade
After the Russia-Ukraine war, Western countries imposed many sanctions on Russia. Despite this, India and China are buying cheap oil from Russia. India is buying 43.2% of oil (2.08 million barrels per day) from Russia in 2024-25.
Donald Trump thinks that India and China's purchase of oil from Russia is running Russia's war machine. He wants Russia to enter into a peace agreement with Ukraine. For this, he has threatened to impose a 500% tariff on Russia's trading partners.
Anger over defense trade
America did not like India buying the S-400 system from Russia. America enacted the CAATSA (Countering America's Adversaries Through Sanctions Act) law in 2017, which bans countries buying weapons from Russia, Iran, and North Korea. After India's S-400 deal, America had threatened to impose sanctions on India, but then India got an exemption.
Threat of tariff
Trump has supported a bill, which was introduced by Senator Lindsey Graham. This bill will impose a 500% tariff on goods of countries (such as India and China) trading with Russia. This means that if India sells medicines, clothes or IT services to America, then they will be taxed 5 times more. This bill can be introduced in the US Senate in August 2025. It has the support of 84 senators.
Why is India-Russia defense trade important?
Defense trade with Russia is important for India for several reasons...
Cheap and reliable weapons: Russia provides weapons to India at cheap prices, which are more economical than the US or Europe.
Technology transfer: Russia provides technology to India, such as the BrahMos missile and AK-203 rifles, which are being manufactured in India.
Geopolitical balance: India maintains a balance between the US and China by maintaining relations with Russia. This is part of India's strategy.
Impact of tariffs on India
If Trump's tariffs are implemented, India may face many problems...
Impact on exports: India sells goods worth $83 billion (2024-25) to the US, such as medicines, clothing, and IT services. The tariffs will make these goods very expensive in the US, which will reduce India's exports.
Inflation: India gets cheap oil from Russia. If this stops, India will have to buy expensive oil, which will increase the prices of petrol-diesel and other goods.
Crisis on defense deals: It may become difficult to buy weapons from Russia. Buying weapons from America will be expensive.
Diplomatic pressure: India will have to increase diplomacy with America to avoid tariffs. India is increasing its oil and gas purchases from US.
India's strategy
India is taking several steps to deal with this situation...
Diplomacy: Foreign Minister S. Jaishankar said that India is talking to Senator Graham so that India's interests are protected.
Alternative sources: India is increasing oil purchases from America, Africa and Latin America. While Oil imports from US reached 4.39 lakh barrels per day in June 2025.
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