U.S. President Donald Trump has announced intentions to raise tariffs on India within the next 24 hours, citing the South Asian nation's continued imports of Russian oil. The announcement, reported by Nikkei Asia, signals escalating trade tensions between Washington and New Delhi over energy sourcing amidst the ongoing conflict in Ukraine.
India has significantly increased its purchases of Russian crude oil since the February 2022 invasion of Ukraine. Russia now accounts for more than one-third of India's total oil imports, a substantial rise from less than one percent prior to the conflict. This shift has occurred as Western sanctions prompted Russia to offer discounted crude.
New Delhi has consistently defended its energy procurement strategy, emphasizing the need to secure affordable oil supplies to manage domestic inflation and ensure energy security for its large population. Indian officials have stated that the availability of discounted Russian crude has also allowed the country to stabilize retail fuel prices.
President Trump's threat includes a potential 25% tariff rate on Indian goods, alongside warnings of broader penalties for countries that continue to purchase Russian oil. Some reports indicate a threat of 100% tariffs on U.S. imports from nations that maintain such trade ties unless a major peace deal is reached in Ukraine.
In response, India's Ministry of External Affairs has called the targeting "unjustified and unreasonable," pointing to continued significant trade between the European Union and the United States with Russia in other sectors. The MEA highlighted that the U.S. itself continues to import uranium, palladium, and fertilizers from Russia.
While some Indian state refiners reportedly paused Russian oil purchases temporarily due to narrowing discounts and the U.S. threats, official sources in India have rebutted claims that the country would halt these imports. Replacing Russian oil entirely would pose significant logistical and economic challenges for India, whose refineries are configured for the type of crude Russia supplies.