In a major geopolitical move, the Trump administration has announced a 50% tariff on India’s oil imports from Russia, citing that New Delhi is making “huge profits” by reselling discounted Russian crude. The decision, which will take effect from 27 August 2025, comes amid ongoing tensions linked to the Russia-Ukraine war.
India Profiting from Cheap Russian Oil, Says US
Speaking to CNBC on 19 August 2025, US Finance Minister Scott Besant claimed that India has dramatically increased its dependence on Russian oil. “Earlier, India used to buy less than 1% of its oil needs from Russia, but now that figure has risen to 42%,” Besant said. “India buys cheap oil from Russia and resells it for profit. Some wealthy Indian families are especially benefiting from this arrangement.”
China Treated Differently
While India faces a steep 50% tariff, China has been hit with a 30% tariff. The Trump administration argues that China’s situation is different because Beijing imports oil from multiple sources. “Before Russia’s attack on Ukraine, China imported 13% of its oil from Russia, which has now increased to 16%. Their dependence is not as concentrated as India’s,” Besant explained.
Russia Backs India, Warns the US
Moscow responded strongly to the new tariffs, stating that every country has the sovereign right to choose its trading partners. Russia warned the United States against interfering in bilateral energy deals, while voicing support for India’s energy strategy.
With the new tariffs set to be implemented soon, analysts believe the move could further strain US-India trade relations while pushing New Delhi and Moscow closer together.
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