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Key Points

Trump hinted the US may not impose additional 25% tariffs on India for buying Russian oil, citing India's shift away from Russian supplies. India has significantly increased energy imports from the US, helping reduce America's trade deficit. The US Treasury warned of potential sanctions if Trump-Putin talks in Alaska falter. New Delhi maintains its energy diversification strategy aligns with national interests and US-India strategic ties.

Key Points: Trump Hints at No New Tariffs on India Over Russian Oil Purchases

  • Trump signals possible exemption for India from secondary sanctions
  • India boosts US energy imports by 51% to reduce trade deficit
  • US Treasury warns of higher tariffs if Alaska talks fail
  • New Delhi defends energy diversification as vital for economic security
3 min read

US may not impose additional 25 pc tariffs on India over Russian oil, hints Trump

Trump suggests US may avoid secondary tariffs on India for Russian oil as trade ties strengthen with increased US energy imports.

"Well, he (Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. – Donald Trump"

New Delhi, Aug 16

The Donald Trump administration may not impose secondary tariffs on India over purchasing Russian energy, as the US President said that Russia has already lost a key oil client.

Speaking to Fox News aboard Air Force One en route to Alaska, Trump said the US may not impose secondary tariffs on countries continuing to buying Russian crude oil.

"Well, he (Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 per cent of the oil. China, as you know, is doing a lot…,” said Trump.

“And if I did what's called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I'll do it. Maybe I won't have to do it,” he added.

The secondary 25 per cent tariffs on India are likely to come into effect from August 27.

Earlier this week, US Treasury Secretary Scott Bessent said if “things don't go well” between Trump and Putin at the Alaska summit, then secondary sanctions on India for purchasing Russian oil could go higher.

Meanwhile, the government has already said the targeting of India is unjustified and unreasonable. “Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” it said.

The fact is that India has sharply increased its purchases of oil and gas from America. This, in turn, has led to a reduction in India’s trade surplus with the US, which is a major aim of the Trump administration’s trade policy.

Official figures show that India’s oil and gas imports from the US have jumped by as much as 51 per cent from January to June this year. The country’s liquefied natural gas (LNG) imports from the US nearly doubled to $2.46 billion in the financial year 2024-25 from $1.41 billion in 2023-24.

Prime Minister Narendra Modi had assured in February that India would increase energy imports from the US to $25 billion in 2025 from $15 billion in 2024 to help reduce the trade deficit of the US. This was followed by Government-owned Indian oil and gas companies entering into discussions for more long-term energy purchases from the US companies. New Delhi has also made it clear that it was diversifying its sources of energy imports to reduce dependence on Russian oil.

New Delhi has also made it clear that India and the US share a very important strategic relationship that goes beyond trade.

- IANS

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Reader Comments

S
Sarah B
As an American living in Delhi, I think this shows how complex global trade relationships are. India is smartly balancing between Russia and US interests while protecting its own economy.
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Ananya R
Why is America always trying to bully other countries? We have every right to buy oil from whoever gives us the best deal. Modi government is doing right by diversifying our sources.
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Karthik V
The 51% increase in US oil imports shows we're serious about balancing trade. But we can't suddenly stop Russian oil - our refineries are built for that grade. Transition takes time!
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Michael C
While I understand India's position, as someone who follows geopolitics closely, I think New Delhi could be more transparent about its long-term energy strategy to avoid such tensions.
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Priyanka N
Trump is just playing his usual negotiation game. India should stay firm - we're not some small country that can be pushed around. Our $25 billion commitment to US energy should be appreciated!
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David E
The trade deficit numbers show India is making genuine efforts. Both countries need to understand each other's constraints - India needs affordable energy, US wants balanced trade.

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