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| Trump announces tariff hike on India over Russian oil deals |
President Donald Trump said Monday he will sharply boost U.S. duties on Indian goods because New Delhi keeps buying large volumes of Russian oil and then sells some for profit . He made the threat on his own platform, Truth Social, without giving exact new rates .
He warned that India shows “no care” for Ukrainians killed by Russia and then “sells it on the open market for big profits.” His post ties an August 8 deadline for Russia to start peace talks to a 25% tariff rise at 12:01 a.m. Eastern on Thursday .
India bought about 1.75 million barrels of Russian oil per day from January through June—up slightly from last year—Reuters sources say . That trade helps fund Russia’s war, and U.S. leaders fear higher oil revenue boosts Moscow’s arms purchases .
Earlier this year, Trump set a 25% tariff on all Indian imports and hinted at steeper penalties if oil deals kept flowing . He now promises a “substantial” hike unless India stops its deep Russian purchases by his deadline .
Unnamed Indian officials told Reuters they will keep buying Russian crude despite U.S. pressure . New Delhi argues it needs discounted oil to meet rising fuel demand, paying around $60 per barrel versus $75 elsewhere .
State refiners ramped up purchases when Western sanctions tanked Russian oil prices, then sold part of that supply to Asia and Europe for profit . IOC, India’s top refiner, even bought U.S., Canadian and Abu Dhabi crude for September delivery to diversify supplies .
Global markets dipped on the threat. Brent crude eased 0.6% to $69.24 a barrel, and U.S. crude fell 0.7% to $66.85 . Traders worry steeper U.S. duties could cut Russia’s main revenue stream and force buyers to seek costlier oil elsewhere .
Meanwhile, some U.S. senators back 500% “secondary tariffs” on any country buying Russian energy until Moscow agrees to peace talks . That bipartisan push would hit India and China hardest, since they together take nearly 60% of Russia’s oil exports .
In June, Treasury Secretary Scott Bessent said cutting Russia’s oil revenue is key to ending its war machine . Trump’s plan ramps up trade pressure while envoy Steve Witkoff plans a ceasefire mission to Moscow this week .
India’s finance ministry is weighing countermeasures, like higher duties on U.S. imports and tighter rules on foreign oil trading . Some diplomats in Washington ask the Biden team to ease off, citing ties on climate and defense .
Critics warn harsh U.S. levies risk pushing India closer to China and Russia . They note U.S. goods exports to India hit $70 billion last year while U.S. investments topped $130 billion . Business groups fear higher duties could cost American jobs in energy and tech sectors .
Some analysts say India may agree to cut Russian oil buys in stages, trading off lower U.S. pressure for security of supply . Still, that shift would force New Delhi to pay more for Gulf or U.S. crude, lifting fuel costs by 5–8 cents a liter .
Long term, India aims to cut oil use 20% by 2030 under its climate pledge . U.S. sanctions might speed that green push, but New Delhi needs more solar and wind projects to meet renewable targets .
In Congress, lawmakers eye a bill mandating up to 500% tariffs on Russian energy buyers, with carve-outs for nations that curb their imports . If passed, it would backstop Trump’s threats and bar importers from U.S. markets until they halt Russian deals .
That complex mix of trade, diplomacy and sanctions underlines how energy ties have become a key tool in the broader fight over Ukraine’s future. For now, markets and governments wait to see how deep Trump’s “substantial” increase will really cut into India’s oil trade, and who will blink first.