Trump's 25% Tariff Warning: Impact on India and Other Russian Oil Importers
US President Donald Trump has imposed a 25% additional tariff on goods from India and warned other countries importing Russian oil of similar penalties. This move is aimed at pressuring Russia to end the Ukraine conflict.
TariffRussian OilIndiaTrumpInternational TradeReal EstateAug 07, 2025
The Secretary of Commerce, in coordination with the Secretary of State, the Secretary of the Treasury, and other senior officials, is tasked with determining whether any country is directly or indirectly importing Russian Federation oil. If such imports are identified, the Secretary of State, in consultation with other key officials, will recommend whether and to what extent action should be taken, including the imposition of a 25 per cent additional ad valorem rate of duty on imports from that country.
According to the executive order, 'Russian Federation oil' is defined as crude oil or petroleum products extracted, refined, or exported from Russia, regardless of the nationality of the entity involved in the production or sale. Indirect imports are defined as purchasing Russian Federation oil through intermediaries or third countries where the origin of the oil can be traced back to Russia.
China, India, and Turkey are the major importers of Russian crude oil, according to the Centre for Research on Energy and Clean Air (CREA). Other significant importers of Russian crude include the European Union and Myanmar. Major importers of Russian petroleum products include Turkey, China, Brazil, India, Saudi Arabia, the United Arab Emirates, Libya, Taiwan, Tunisia, Egypt, Malaysia, Ghana, South Korea, and Nigeria.
Over the past few weeks, Trump has threatened to impose secondary tariffs or penalties on countries importing large volumes of Russian energy, particularly targeting China and India. The renewed pressure is aimed at forcing Russia to end the ongoing conflict in Ukraine. For Trump, this is an opportune time to pressure countries like India and China, given their sensitive trade negotiations with the US.
Last week, Trump posted on his social media platform Truth Social that a tariff of 25 per cent plus an additional unspecified tariff 'penalty' would be imposed on India for its defence and energy imports from Moscow. Earlier this week, Trump announced additional tariffs on India for profiting from Russian oil. India responded sharply, terming Trump’s actions as 'unfair, unjustified, and unreasonable'. Ministry of External Affairs spokesperson Randhir Jaiswal stated that it is 'extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest'.
When Russia invaded Ukraine in February 2022, Moscow’s share in New Delhi’s oil imports was less than 2 per cent. As the West shunned Russian crude, Russia began offering discounts, and Indian refiners quickly capitalized on the opportunity. Russia has since become India’s largest source of crude oil, accounting for 35-40 per cent of India’s total oil imports by volume. Indian refiners also increased fuel exports to Europe as the continent decided to stop importing refined petroleum fuels from Russia.
Despite the criticism from the West, this shift in oil trade had the US’s blessing. The US wanted energy markets to remain stable and well-supplied. At an event in May 2024, the then US Ambassador to India Eric Garcetti said, 'India bought Russian oil because we wanted somebody to buy Russian oil at a price cap. That was not a violation or anything. It was actually the design of the policy because as a commodity we didn’t want oil prices going up, and they fulfilled that.' Russian oil was and remains sanction-free, with only a price cap of $60 per barrel introduced in December 2022 on seaborne Russian crude by the US and its allies.
In April last year, senior US officials in New Delhi stated that the US did not expect or request India to reduce its oil imports from Russia. The objective of the sanctions and G7 price cap regime was to keep Russian crude flowing while limiting Kremlin’s revenue, thereby impairing Russia’s ability to fund the war in Ukraine. Anna Morris, the then US Assistant Secretary for Terrorist Financing and Financial Crime, clarified that from a technical standpoint, Russian oil once refined into petroleum fuels and products could no longer be considered of Russian origin.
Frequently Asked Questions
What is the 25% tariff imposed by Trump on India?
US President Donald Trump has imposed a 25% additional tariff on goods from India, including a warning to other countries importing Russian oil of similar penalties.
Which countries are major importers of Russian crude oil?
Major importers of Russian crude oil include China, India, and Turkey, along with the European Union and Myanmar.
What is the definition of 'Russian Federation oil' in the executive order?
The executive order defines 'Russian Federation oil' as crude oil or petroleum products extracted, refined, or exported from Russia, regardless of the nationality of the entity involved in the production or sale.
Why did India increase its imports of Russian oil?
India increased its imports of Russian oil after Russia began offering discounts following the invasion of Ukraine, making it a cost-effective option for Indian refiners.
What was the US's stance on India's imports of Russian oil initially?
Initially, the US supported India's imports of Russian oil to stabilize global energy markets and prevent oil prices from rising.
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