Unilateral trade measures by major powers over energy sourcing test India's strategic autonomy. Analyse.

Strategic autonomy is India's freedom to choose its partners and policies based on national interest rather than pressure from power blocs. This freedom was tested directly in August 2025. A U.S. executive order added a 25% duty on Indian goods because India was importing Russian oil, which raised total duties to 50% [1].

Nature of the measures

• Secondary tariffs: The U.S. penalised a third country for buying from Russia, rather than penalising Russia itself [1].
• Extra-territorial sanctions: The EU's 18th sanctions package bans, from 21 January 2026, refined fuels made from Russian crude in any third country. Partners such as the U.S. and the UK are exempt [2]. This hits India's refined-product exports.
• Green trade barriers: The EU's CBAM has applied in its definitive phase since 1 January 2026. It puts a carbon price on steel and aluminium imports, which penalises coal-heavy energy mixes [3].

How they test autonomy

• Energy security: The MEA called the tariffs "unfair, unjustified and unreasonable". It said India's imports follow market factors and secure energy for 1.4 billion people [4].
• Double standards: The MEA noted that the U.S. still imports Russian uranium hexafluoride and palladium, and that EU–Russia goods trade reached €67.5 billion in 2024. It added that Washington had earlier encouraged India's purchases [5].
• Economic leverage: A February 2026 U.S. order removed the duty, citing an Indian commitment to stop importing Russian oil and to buy U.S. energy. The U.S. Commerce Department will monitor India and may recommend reimposing the duty [6].
• Bargained outcome: The India–U.S. joint statement set out an interim trade framework. Under it, India intends to buy $500 billion of U.S. energy, aircraft, technology and other goods over five years [7].

Reassembling the picture

• Erosion view: A choice about where to buy energy became a trade concession, with a snap-back threat attached [6].
• Resilience view: India neither retaliated nor simply gave in. It turned coercion into a negotiated package with tariff relief and market access [7]. Autonomy means choosing among trade-offs, not being immune to them.

Tariffs, extra-territorial sanctions and carbon levies have together turned energy sourcing into a geopolitical lever. India should diversify suppliers, speed up renewables to blunt CBAM, and work with Global South partners for WTO-consistent, non-discriminatory rules. Over time, strategic autonomy will depend less on avoiding pressure and more on economic strength and having several options to choose from.