Trump's 25% Tariff Warning: Implications for India and Other Russian Oil Importers
US President Donald Trump's executive order imposes a 25% tariff on goods from India and warns other countries importing Russian oil of similar penalties. India, China, and Turkey are the major importers of Russian crude oil, and the US aims to pressure these countries to cut down on Russian imports to end the Russia-Ukraine war.
TariffRussian OilIndiaDonald TrumpInternational TradeReal Estate NewsAug 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 other country is directly or indirectly importing Russian Federation oil. If such a determination is made, the Secretary of State, in consultation with other officials, will recommend whether and to what extent action, including a 25 per cent tariff, should be taken.
The term “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 to Russia.
According to the Centre for Research on Energy and Clean Air (CREA), China, India, and Turkey are the major importers of Russian crude oil. Other importers 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, frustrated with Russian President Vladimir Putin over the continuation of the Russia-Ukraine war, has threatened to impose secondary tariffs or penalties on countries importing large volumes of Russian energy. Initially, these threats were directed at both China and India, the top two importers of Russian crude oil. However, in recent days, Trump has specifically targeted India.
This renewed pressure from the US and other Western powers is aimed at forcing Russia to end the Ukraine war. For Trump, who wants the three-year-old conflict to end quickly, this is an opportune time to pressure countries like India and China, given their ongoing trade negotiations with the US.
Last week, Trump posted on his social media platform Truth Social that a 25 per cent tariff 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 has responded sharply to Trump’s remarks, terming his actions “unfair, unjustified, and unreasonable”. In a statement, Ministry of External Affairs spokesperson Randhir Jaiswal said it was “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”. Jaiswal also noted that India’s imports from Russia began as traditional supplies were diverted to Europe, and the US had initially encouraged such imports to stabilize global energy markets.
When Russia invaded Ukraine in February 2022, Moscow’s share in New Delhi’s oil imports was less than 2 per cent. As much of the West shunned Russian crude, Russia began offering discounts, and Indian refiners took advantage of the opportunity. Russia quickly became 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 criticism from the West, this shift in oil and petroleum product trade had Washington’s blessing, as the US wanted to maintain stable and well-supplied energy markets. In May 2024, the then US Ambassador to India, Eric Garcetti, said, “Actually, they (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 continues to be sanction-free, with only a price cap of $60 per barrel on seaborne Russian crude introduced by the US and its allies in December 2022. The cap prohibits the export of Russian seaborne crude at over $60 per barrel if the trade involves Western shipping or insurance services.
In April last year, senior US officials stated at a New Delhi event that the US neither expected India to reduce its oil imports from Russia nor had requested it to do so. The then US Treasury Assistant Secretary for Economic Policy, Eric Van Nostrand, said 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, also noted that Russian oil, once refined into petroleum fuels and products, could no longer be considered of Russian origin, dismissing the argument that Indian refiners were facilitating Russian petroleum’s entry into Europe.
Frequently Asked Questions
What is the 25% tariff imposed by Trump on goods from India?
The 25% tariff is an additional duty imposed by US President Donald Trump on goods from India, aimed at pressuring India to reduce its imports of Russian oil and other energy products.
Which countries are major importers of Russian crude oil?
The major importers of Russian crude oil include China, India, and Turkey. Other significant importers include the European Union and Myanmar.
What is the purpose of the 25% tariff on Russian oil imports?
The purpose of the 25% tariff is to pressure countries like India and China to cut down on their imports of Russian oil, thereby reducing Russia's revenue and potentially influencing its actions in the Russia-Ukraine war.
How has India responded to Trump's tariff threats?
India has responded sharply to Trump’s tariff threats, terming them 'unfair, unjustified, and unreasonable'. India argues that its actions were taken in its national interest and with the initial encouragement of the US to stabilize global energy markets.
What is the US's stance on India's imports of Russian oil?
Initially, the US encouraged India to import Russian oil to stabilize global energy markets. However, the US has recently shifted its stance, threatening tariffs to pressure India to reduce its Russian oil imports.
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