A heated debate has ignited over the real reason behind the heavy tariffs that Donald Trump imposed on India. According to former RBI governor Raghuram Rajan, the publicly given rationale India’s purchase of Russian oil amounts to a mere pretext. Instead, Rajan argues, the tariffs stem from a deeper political vendetta triggered by credit over a supposed India-Pakistan ceasefire.
Oil Purchases Not the True Cause — Rajan Speaks Out
In a recent statement, Rajan dismissed the claim that Russia-linked oil deals prompted U.S. sanctions. He said that the oil-purchase narrative served only as cover. What truly irked Trump, he added, was a “personal feud” tied to international political credit.
Rajan recalled that Trump has long sought recognition for peacemaking on the global stage — including a coveted Nobel Peace Prize. Drawing on this, he contended that Trump’s narrative — that he intervened to prevent a nuclear war between India and Pakistan — was part of a broader campaign for acclaim.
India–Pakistan Ceasefire Drama — Who Gets Credit?
Trump reportedly claimed that he threatened both India and Pakistan with tariffs, forcing them into a ceasefire. While Pakistan responded favorably to this version, India denied it. Prime Minister Narendra Modi repeatedly stated that any agreement with Pakistan came after the Pakistani military sought terms, and that no third-party (including the U.S.) played a role.
Rajan argued that Trump’s frustration over being denied this ceasefire credit fueled his hostility toward India. Meanwhile, Pakistan appeared to gain politically from Trump’s assertive PR campaign.
Tariffs: Disproportionate and Politically Motivated, Says Rajan
Notably, while the U.S. imposed a 19% tariff on Pakistan, it imposed a steep 50% tariff on India. Rajan described this as disproportionate and indicative of a targeted political strategy. He added that other countries like Hungary under Viktor Orban secured exemptions despite purchasing Russian oil, underscoring inconsistency in U.S. policy.
According to Rajan, these facts clearly show that “Russian oil purchases were never a major issue for the U.S.” Instead, he claimed, Trump used them as a smokescreen to settle personal scores.
