Trump Threatens Higher Tariffs on India Over Russian Oil Trade
Washington links India’s discounted Russian crude imports to steep tariffs on Indian exports, even as New Delhi seeks a trade deal and defends its energy security.
What exactly has Trump threatened?
US President Donald Trump has warned that tariffs on Indian goods could be raised “very substantially” beyond the current 50% level if New Delhi does not curb its purchases of Russian crude oil. [web:21][web:31][web:34]
Trump argues that India is buying large volumes of Russian oil at a discount and even reselling some of it on the open market, which he claims helps fund Russia’s war effort in Ukraine. [web:31][web:37]
Why are tariffs already so high?
In August 2025, Washington doubled overall tariffs on Indian exports from 25% to 50%, directly linking the hike to India’s continued import of Russian crude despite Western sanctions. [web:27][web:35]
These duties make Indian products less competitive in the US market compared with rivals such as Vietnam or Bangladesh, and Indian exporters have warned that 50% tariffs are “hurting” their businesses. [web:29][web:38]
India’s stand on Russian oil
India maintains that Russian oil is essential for meeting the energy needs of 1.4 billion people at affordable prices, and officials argue that its purchases do not violate any international law. [web:22][web:32]
New Delhi also points out that other major buyers, including European states and China, have continued to import Russian energy at various stages of the conflict, making it unfair to single out India. [web:22][web:32]
Has India actually cut Russian imports?
Data from analytics firms such as Kpler show that India’s Russian crude imports fell sharply to about 1.2 million barrels per day in December 2025, down from around 1.84 million barrels per day in November. [web:30][web:33][web:36]
Even after this drop, Russian barrels still accounted for roughly one-quarter of India’s total crude imports in December, indicating that Russia remains one of New Delhi’s top suppliers. [web:30][web:33][web:36]
Trade talks after holiday pause
India and the US have resumed trade discussions after a pause, with Russian oil emerging as the main stumbling block to a broader bilateral trade agreement. [web:22][web:29][web:32]
To strengthen its negotiating position, the Indian government has asked refiners to submit weekly data on Russian and US crude imports so it can present verified numbers during talks. [web:22][web:26][web:32]
Why this topic matters for exams
For exam aspirants, this issue links multiple syllabus areas: international relations, energy security, balance of payments, and the impact of sanctions on global trade flows. [web:22][web:29]
Questions can appear in Current Affairs, Economy (tariffs, trade deficit), as well as Polity & IR segments, especially in exams like UPSC, RRB NTPC, SSC CGL, CHSL, banking, and insurance. [web:22][web:29]
PYQs-style Practice Questions on India–US Tariff & Russian Oil Issue
(B) India’s purchase of Russian crude oil
(C) India’s IT services exports
(D) India’s gold imports
Correct Answer: (B) India’s purchase of Russian crude oil. [web:21][web:31]
(B) MFN tariffs under WTO rules
(C) Anti-dumping duties on steel
(D) Safeguard duties on solar panels
Correct Answer: (A) Punitive tariffs linked to Russian oil imports. [web:27][web:35]
(B) 25%
(C) 40%
(D) 60%
Correct Answer: (B) 25%. [web:30][web:33][web:36]
(B) Prepare for divestment of PSU refiners
(C) Strengthen its position in trade negotiations with the US
(D) Create a fuel price stabilisation fund
Correct Answer: (C) Strengthen its position in trade negotiations with the US. [web:22][web:26][web:32]
(B) To maintain energy security and affordable prices for its population
(C) To stabilise the rupee–ruble exchange rate
(D) To bypass OPEC production cuts
Correct Answer: (B) To maintain energy security and affordable prices for its population. [web:22][web:32]
Key Notes for Exam Aspirants
• Link this topic with: sanctions, balance of payments, current account deficit, rupee stability, and energy security. [web:22][web:29]
- Make a short one-page note: “India–US Tariffs & Russian Oil” with dates, numbers, and key terms like tariff, sanctions, energy security.
- Map-based revision: mark Russia, India, major sea routes for oil tankers, and key chokepoints (Strait of Hormuz, Suez, etc.).
- For descriptive exams (UPSC Mains, banking descriptive), use this issue as an example of how geopolitics directly affects trade and inflation.
