Washington, United States – US President Donald Trump issued an executive order on Wednesday imposing an additional 25% tariff on goods imported from India, accusing New Delhi of buying Russian oil directly or indirectly, in violation of Western restrictions imposed on Moscow since the 2022 invasion of Ukraine.
The White House statement issued on Wednesday said: “The Government of India is currently importing oil from the Russian Federation, directly or indirectly.” The statement added: “In accordance with applicable laws, an additional customs duty of 25% will be imposed on goods imported from India into the customs territory of the United States”.
The decision came as India, the world’s third-largest oil consumer, continues to import large quantities of Russian crude oil, which is sold at a discounted price, providing it with significant economic advantages. India currently imports about 1.75 million barrels per day from Russia, or about 35% of its total oil imports, compared to less than 2% before the war in Ukraine.
Trump indicated that the new tariffs would be widely applied, warning that “countries that purchase oil or goods from Russia could face economic repercussions, including future sanctions, if a peace agreement with Ukraine is not reached.”
India relies on imports to meet more than 85% of its oil needs. Indian refineries, both state and private, have benefited from the significant decline in Russian crude prices, which has contributed to reducing operating costs, especially for companies such as Reliance Industries and Nayara Energy, which are linked to long-term supply contracts with the Russian company Rosneft.
Despite US pressure, New Delhi has previously resisted calls to reduce its cooperation with Moscow, emphasizing its historical relations with Russia and its economic priorities. But trade reports indicate that Indian state-owned refiners have recently begun halting purchases of Russian oil, a shift seen as an indirect response to international pressure.
This American move is an escalation in Trump’s policy of putting pressure on buyers of Russian oil, as the deadline he gave Russia to reach a peace agreement with Ukraine, scheduled for August 8, approaches the end of.
