'Not Russian Oil, But...': Raghuram Rajan On Why US Imposed Massive Tariffs On India

Last Updated:December 10, 2025, 09:40 IST

Raghuram Rajan claimed that the US imposed a 50 percent tariff on India because it did not endorse Trump's claims of mediating India-Pakistan war.

Former RBI Governor Raghuram Rajan (PTI Photo)

Former Reserve Bank Governor Raghuram Rajan brought in a new perspective regarding the imposition of US tariffs and stated that the import of Russian oil was not the central reason for the Donald Trump administration’s hefty 50 percent tariff on Indian goods. However, the former RBI Governor linked how New Delhi handled comments made by the US President over the military truce with Pakistan following Operation Sindoor.

Speaking at an event at the University of Zurich, Rajan claimed the US imposed a 50 per cent tariff on India because it did not endorse Trump’s version of events, while Pakistan “played along" and got 19 per cent.

“Russian oil wasn’t the issue. I think the central issue was more personalities, especially a personality in the White House and how they treated certain comments made by India after Trump claimed credit for stopping a conflict between India and Pakistan. Pakistan played it right…said that it was all because of Trump," Rajan said, referring to the conflict between India and Pakistan that took place after the Pahalgam terrorist attack.

“India tried to argue that the two countries had reached an agreement without Trump … the truth is probably somewhere in between … But the net effect was that India got 50 per cent tariffs, and Pakistan got 19 per cent. I understand that there was some comment about how your leader in Switzerland tried to explain the tariffs to Trump and that didn’t go well… so we don’t know what really happened between India and the US, but hopefully in the longer run sanity prevails on all sides and we all reach reasonable deals," he added.

The clip, which dates back to December 4, went viral on social media, triggering a flood of sharp criticism, with several internet users accusing Rajan of “twisting the truth" and “undermining India" to justify US actions.

India had launched Operation Sindoor in response to the Pahalgam attack, targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir.

Trump Claimed To Have Mediated India-Pak Conflict

At the height of the conflict with Pakistan, a ceasefire was announced on May 10. Following this, Trump credited himself for the ceasefire, claiming his intervention ended the war.

However, India maintained that an understanding of cessation of hostilities was reached after the Pakistani military’s Director General of Military Operations reached out to his Indian counterpart for direct talks over the issue.

Although Pakistan initially denied the claim, it later accepted it and went ahead and nominated Trump for the 2026 Nobel Peace Prize, in “recognition of his decisive diplomatic intervention and pivotal leadership during the recent India-Pakistan crisis".

Internet Reacts

Rajan’s remarks triggered online criticism, with several claiming India stood its ground by refusing to accept a false narrative, while Pakistan publicly credited Trump for the ceasefire.

One user wrote, “India paid higher tariffs because it refused to bow politically, prioritising national interest over appeasing global powers."

Another user criticised Rajan’s interpretation of the event and wrote, “Truth is lying in between? Sorry Mr Raghuram Rajan, the truth is not lying in between, but the truth is with India. The boot licker Pakistan played the appeasement tactics to please Trump. This tactic immediately rewarded them by lower tariff – just 19% while tariff on India is 50%. Future will tell how much costly would be this 19%."

News world 'Not Russian Oil, But...': Raghuram Rajan On Why US Imposed Massive Tariffs On India

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