US Tariff on India’s Imports Aimed at Hitting Russian Oil Revenue
The United States has announced a 50% tariff on Indian imports, targeting India’s continued purchase of Russian oil. The move, combining a 25% reciprocal duty with a 25% surcharge linked to oil imports, is intended to reduce Russia’s earnings from its key energy customer.
Washington’s Strategy to Squeeze Moscow
President Donald Trump said the tariff would be a “big blow” to Moscow, given that India is among Russia’s top crude buyers since 2022. US officials believe that raising trade costs for India will pressure New Delhi to cut back on Russian oil purchases, thereby limiting Russia’s revenue streams. The measure is part of a wider sanctions effort aimed at constraining Russia’s ability to finance its military operations.
Potential Ripple Effect on Russia
Energy analysts say that while the US tariff directly affects Indian exports to America—such as textiles, gems, and machinery—the larger aim is indirect: to push India toward diversifying oil imports away from Russia. If India reduces its Russian crude intake, Russia could face a decline in its largest non-Western market, forcing it to offer deeper discounts or find alternative buyers in Asia and Africa. Such shifts could further strain Russia’s export revenues, already under pressure from sanctions and logistical challenges.
India’s Response
India has rejected the US move as “unjustified,” stressing that its oil procurement is based on national energy security and economic priorities. Officials say India will continue buying Russian oil as long as it is in the country’s interest, but the tariffs could add pressure in ongoing trade negotiations between the two nations.
