US President Donald Trump on Friday suggested he may reconsider the 25 per cent tariff on India over its continued imports of Russian crude oil, even as New Delhi has not officially confirmed halting its purchases from Moscow.
The President’s remarks came after Washington announced a 25% duty on Indian goods last month, later doubled to 50%, citing India’s oil trade with Russia amid the ongoing Ukraine war. The additional duty is scheduled to take effect on August 27.
Trump: “Maybe I Won’t Have To Do It”
Speaking to Fox News before leaving for Alaska for a high-stakes meeting with Russian President Vladimir Putin, Trump claimed that Russia had “lost India as an oil client,” but left the door open to reversing the tariffs.
“Well, he (Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot… And if I did what’s called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I’ll do it. Maybe I won’t have to do it,” Trump said.
India Pushes Back Against ‘Unfair’ Tariffs
On August 6, Trump escalated the trade row by slapping an additional 25% duty on Indian goods, which was soon doubled to 50%. The move has drawn sharp criticism in New Delhi.
India condemned the tariffs as “unfair, unjustified, and unreasonable,” with Prime Minister Narendra Modi affirming that India “will not back down in the face of economic pressure.” The hike is expected to hit textiles, marine products, and leather exports particularly hard.
Alongside India, Brazil has also been targeted with the highest US tariffs, while Russia and China have accused Washington of exerting “illegal trade pressure.”
Confusion Over India’s Russian Oil Purchases
While a Bloomberg report claimed that India’s state-owned refiners have stopped buying Russian crude following the US action, Indian officials maintain otherwise.
AS Sahney, Chairman of Indian Oil Corporation, clarified that India has not halted Russian oil purchases, emphasizing that procurement is driven by “economic considerations.”
The Stakes for India’s Energy Security
India emerged as the largest buyer of Russian crude in 2022 after Western sanctions isolated Moscow. According to a State Bank of India report, if India stops buying Russian oil, its import bill could rise by USD 9 billion this year and USD 12 billion in the next.
Analysts say India could pivot back to traditional suppliers like Iraq, Saudi Arabia, and the UAE if forced to cut Russian imports. However, Russian crude continues to be offered at discounted rates as demand weakens under EU and US sanctions pressure.
