India’s Oil Diplomacy: Navigating U.S. Tariffs, Caste Controversy, and Strategic Autonomy

The global spotlight is once again on India’s international policy, as a high-profile trade dispute with the U.S.—fueled by mounting tariffs and contentious comments on caste—tests New Delhi’s resilience in protecting national interests and energy security. Recent diplomatic summits and public commentary have amplified the tension, with India’s relationship to Russia’s energy market and its interactions with China drawing scrutiny from Washington.

U.S. Trade Offensive and Caste Remarks

Peter Navarro, former top trade advisor in the Trump administration, sharply criticized Indian Prime Minister Narendra Modi after the Shanghai Cooperation Organization (SCO) summit in China, accusing him of “getting in bed” with Russian President Vladimir Putin and Chinese President Xi Jinping. Navarro’s rhetoric quickly embraced controversy, igniting outrage when he referenced India’s caste system, alleging that “Brahmins are profiteering at the expense of the Indian people” through oil deals with Russia.

These remarks, aired on Fox News, provoked bipartisan condemnation across India, with critics decrying them as divisive and insensitive interference in domestic affairs. Some observers noted that Navarro may have intended to invoke the term “Boston Brahmins,” referring to American elites, not India’s hereditary caste, but the damage was done—the controversy underscoring just how quickly social fault lines can be exposed in global politics.

Oil Trade at the Forefront

At the heart of the dispute lies India’s fast-expanding oil trade with Russia. Prior to the Ukraine conflict, less than 2% of India’s crude came from Russia, but amid Western sanctions, India now sources up to 40% of its oil from Moscow. U.S. officials allege Indian refiners are “profiteering” by buying discounted Russian crude and reselling refined products at higher prices on global markets, thus undermining efforts to isolate Russia financially.

Treasury Secretary Scott Bessent joined Navarro in labeling India, along with China and Russia, as “bad actors” who are inadvertently enabling Moscow’s war effort through continued trade.

India’s Response: Energy Security Comes First

Unfazed by Washington’s pressure, India has repeatedly asserted that its oil imports are driven by the need to secure affordable energy for its 1.4 billion people. The Indian Ministry of External Affairs has decried the latest U.S. tariffs—totaling 50% on many Indian goods, with an additional 25% penalty specific to Russian oil trades—as “unfair, unjustified, and unreasonable”. New Delhi remains firm that “all actions necessary” will be taken to defend national interests in the face of what is now the highest U.S. tariff rates levied on any major trade partner.

Summit Diplomacy: A Message of Strategic Autonomy

Images from the latest SCO summit showed Prime Minister Modi in close, cordial exchanges with Vladimir Putin and Xi Jinping, even riding with Putin in his armored limousine. These gestures of friendship sent a clear signal to the West: India will pursue its own path, balancing relationships throughout Eurasia, regardless of U.S. attempts to exert economic leverage.

Conclusion

As U.S.-India relations face their lowest ebb in years, the ongoing dispute underscores larger questions about sovereignty and multipolarity in the global order. With its assertive pursuit of economic and strategic autonomy, India demonstrates it is willing to endure short-term strain for long-term national benefit—even if it means weathering insults and tariffs alike.