Raghuram Rajan Clarifies: Russian Oil Isn’t the Reason Behind US Tariffs on India

 Raghuram Rajan Clarifies: Russian Oil Isn’t the Reason Behind US Tariffs on India


When headlines broke about the United States imposing new tariffs on certain Indian goods, a wave of speculation followed. Many believed the move was linked to India's purchase of discounted Russian oil. But former RBI Governor Raghuram Rajan has stepped in to clear the air, and his explanation paints a far more subtle image of global trade politics.

Rajan's comment bucked a popularly held view. For months, analysts & commentators have kept up a refrain of how India's continued purchases of Russian oil could lead to diplomatic tension with the West. But Rajan said these tariffs are not a retaliatory move against India's energy policy. They reflect further profound & structural trade issues that have been simmering for a long time.


The real story behind the tariffs


According to Rajan, the tariffs are linked to global manufacturing competitiveness and concerns on source link imbalances. The U.S. has been getting increasingly sensitive on its domestic industries losing ground before foreign producers. The emerging rise in imports in certain sectors, especially those wherein the U.S. is trying to rebuild or strengthen local ability, caused a tariff actions across multiple countries — not just India.


It reframes what had been a geopolitical energy Conflict into a more popular problem: economic protectionism. Rajan highlights that tariffs represent an attempt by America to protect its own industrial form, not a way to express dissatisfaction with India's oil purchases.


Why Russian Oil Became the Easy Scapegoat


Russian oil became a hot topic of conversation across the world, especially after geopolitical tensions changed the route of energy around the world. India decided to buy cheaper russian oil, which was pragmatic and called for stable domestic fuel prices during times of turbulence. But because the topic is just so politically charged, it became a convenient hook for explaining all friction between India and Western country's.


Rajan’s clarity is explanatory. He reminds people's that India’s energy options do not ipso facto attract punitive economic actions. Rather, what we are witnessing is part of a broader remake of global trade relationships-one in which each major economy is rebalancing its exposure, source link, and competitive industries.


What It Means to India–US Relations


The safety by Rajan should help dispel apprehensions in the public mind over the potential of a diplomatic fallout. India and the U.S. had been forging closer strategic links, especially in the areas of technology, defence, and clean energy. A tariff-related misunderstanding could have easily overshadowed this progress.


By decoupling the tariff problem from the narrative on Russian oil, Rajan suggests that India–US relations links on stable footing. The disagreements, where they exist, are part of normal economic negotiations — not signs of deeper political discord.

A Lesson to Global Onlookers Raghuram Rajan's intervention is a good example of how multilayered and complex these global trade actions are. With Russian oil, there are all forms of high-profile topics. The truth usually lies in long-term economic patterns rather than in sensational headlines.

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