Will the US Avoid Additional 25% Tariffs on India Over Russian Oil?
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Synopsis
In a surprising turn of events, US President Donald Trump hints that additional tariffs on India for buying Russian oil may be avoided. As geopolitical tensions rise, the implications for India's energy strategy and US-India relations are profound. What does this mean for the global oil market and economic security?
Key Takeaways
- Trump suggests avoiding tariffs on India for Russian oil purchases.
- India significantly increases oil imports from the US.
- Trade surplus reduction is a goal of US policy.
- The strategic relationship between India and the US is vital.
- India is diversifying energy sources to reduce Russian reliance.
New Delhi, Aug 16 (NationPress) The Donald Trump administration may refrain from implementing secondary tariffs on India due to its purchases of Russian energy, as the US President indicated that Russia has lost a significant oil client.
In an interview with Fox News while on Air Force One heading to Alaska, Trump mentioned that the US might not impose secondary tariffs on nations that continue to acquire Russian crude oil.
"Well, he (Vladimir Putin) lost an oil client, so to speak, which is India, which was responsible for about 40% of the oil. China, as you know, is doing a lot...,” said Trump.
“If I were to implement what is known as a secondary sanction, or a secondary tariff, it would be quite devastating for them. If I must do it, I will. Perhaps I will not have to,” he added.
The anticipated secondary 25% tariffs on India may take effect from August 27.
Earlier this week, US Treasury Secretary Scott Bessent stated that if “things do not go well” between Trump and Putin at the Alaska summit, then sanctions on India for purchasing Russian oil could escalate.
Meanwhile, the Indian government has already conveyed that targeting India is unwarranted and unreasonable. “As with any major economy, India will take all necessary measures to protect its national interests and economic security,” it stated.
Notably, India has significantly increased its purchases of oil and gas from the US, leading to a reduction in its trade surplus with the US, a key objective of the Trump administration's trade policy.
Official data reveals that India's oil and gas imports from the US surged by 51% from January to June this year. Additionally, the country’s liquefied natural gas (LNG) imports from the US nearly doubled to $2.46 billion in the financial year 2024-25, up from $1.41 billion in 2023-24.
Prime Minister Narendra Modi assured in February that India would boost energy imports from the US to $25 billion by 2025, up from $15 billion in 2024, to help reduce the US trade deficit. This was followed by discussions between Indian oil and gas companies and US firms regarding long-term energy purchases. New Delhi has also clarified its efforts to diversify its energy import sources to lessen reliance on Russian oil.
New Delhi has emphasized that India and the US share a crucial strategic relationship that transcends trade.
Point of View
It is crucial to recognize the balance of interests at play. While the US aims to impose sanctions to curb Russian influence, India is strategically diversifying its energy imports. This situation highlights the need for diplomatic engagement that respects national sovereignty and economic priorities.
NationPress
19/08/2025
Frequently Asked Questions
What are the potential tariffs on India regarding Russian oil?
The US may impose secondary tariffs of 25% on India, although President Trump has hinted that this might not occur due to India being a key client.
Why is the US concerned about India purchasing Russian oil?
The US seeks to limit Russia's oil revenues as part of its broader strategy to counter Russian geopolitical influence.
What is India’s response to potential US tariffs?
India's government has stated that targeting it is unjustified and will take measures to protect its national interests.
How much has India's oil imports from the US increased?
India's oil and gas imports from the US have surged by 51% from January to June this year.
What are the long-term energy plans of India with the US?
India aims to increase its energy imports from the US to $25 billion by 2025, up from $15 billion in 2024.
