US President Donald Trump hints at possible penalties on India over Russian oil but leaves door open, even as New Delhi continues purchases.
Trump Comments on India and Russian Oil
US President Donald Trump on Friday claimed Russia lost India as one of its oil clients following Washington’s 25% duty on Indian goods. He suggested that secondary tariffs on countries continuing to buy Russian crude, including India, may not be necessary.
“Well, he (Putin) lost an oil client, so to speak, which is India, which was doing about 40% of the oil… And if I have to impose a secondary tariff, I will. Maybe I won’t have to,” Trump told Fox News as he departed for Alaska to meet Russian President Vladimir Putin.
US Tariffs on India
- On August 6, the US escalated its tariff offensive, adding 25% duty and later doubling it to 50% on Indian goods over Russian oil imports.
- India condemned the move as “unfair, unjustified and unreasonable”, affecting sectors like textiles, marine, and leather exports.
- Prime Minister Narendra Modi reiterated that India would not back down under economic pressure.
Impact on Trade and Energy
- India, alongside Brazil, faces the highest US tariffs of 50%.
- Bloomberg reported that India’s state-owned refiners have paused buying Russian crude, though the government has not confirmed this.
- Indian Oil Corporation chairman AS Sahney stated that India continues purchases based on economic considerations.
India’s Reliance on Russian Oil
- India became the largest buyer of Russian oil in 2022 after Western sanctions on Moscow.
- The State Bank of India estimates a potential increase in India’s crude oil import bill by USD 9–12 billion if Russian oil imports stop.
- Alternatives include oil from Iraq, Saudi Arabia, and UAE, though Russian crude remains competitively priced.
Market and Global Outlook
Data intelligence firm Kpler Ltd reports Russian crude is being offered at lower prices, amid EU sanctions and potential US penalties, affecting global demand dynamics.
The US-India tariff tension highlights the delicate balance between geopolitics and trade, with India maintaining its energy security while navigating Washington’s economic pressure. As both countries monitor developments, the global oil market remains under close watch for the impact of any potential secondary sanctions.
Also Read : Trump Claims Russia Lost “Oil Client” India Amid Tariff Battle
