US President Donald Trump has renewed pressure on India to end its imports of discounted Russian oil, saying tariffs on Indian goods will stay in place until New Delhi stops those purchases.
Speaking aboard Air Force One on Sunday, Trump reiterated that Indian Prime Minister Narendra Modi told him India would stop buying Russian crude.
The comments bring energy diplomacy back to the forefront of US–India ties, with Washington insisting that revenue from Russian oil continues to finance Moscow’s war in Ukraine.
New Delhi, meanwhile, maintains that affordable fuel is vital for its domestic economy, which relies on energy imports for more than four-fifths of its consumption.
Trump links tariffs directly to Russian oil purchases
Trump made clear that tariffs on Indian goods, some as high as 50%, will remain until India fully stops buying Russian oil.
He said the duties are a direct response to India’s decision to continue importing from Moscow despite repeated calls from the United States to scale back.
The exchange has exposed a widening gap between Washington’s sanctions policy and India’s energy security goals.
The link between tariffs and oil purchases adds a new layer of tension to trade negotiations that have otherwise sought to expand cooperation in defence, technology, and investment.
Experts note that continued tariffs could slow India’s export growth, which includes key sectors such as pharmaceuticals, textiles, and machinery.
India remains reliant on discounted Russian crude
Since Western nations curbed imports of Russian oil in 2022, India has become the largest buyer of Moscow’s seaborne exports.
The discounted barrels have allowed Indian refiners to stabilise fuel prices and control inflation, a crucial factor for the country’s fast-growing economy.
While a White House official claimed last week that India had halved its purchases of Russian oil, reports citing Indian industry sources said no immediate reduction had been seen.
Refiners have already booked November cargoes, including shipments due in December, suggesting that any decline in imports will only appear in trade data towards the end of the year.
India’s imports from Russia are projected to rise by roughly one-fifth this month to 1.9 million barrels per day.
The increase follows Russia’s move to ramp up exports after Ukrainian drone strikes disrupted refinery operations.
Washington’s warning and India’s balancing act
Trump’s latest warning effectively turns tariffs into a diplomatic tool, using trade measures to enforce geopolitical objectives.
For Washington, convincing India to scale back purchases is part of a broader effort to reduce Russia’s oil revenue and limit its ability to fund the war in Ukraine.
For India, however, a rapid shift away from Russian crude could strain its energy security and push up domestic fuel costs.
With more than 80% of its oil imported, New Delhi faces the challenge of balancing economic priorities against strategic partnerships.
The situation also places pressure on upcoming trade discussions between the two democracies, as the United States continues to view India as a key partner in countering China’s regional influence.
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