US President Donald Trump suggested that Russia has lost India as an oil client due to US penalties, while indicating he may reconsider imposing additional tariffs on Indian oil purchases.
US President Donald Trump claimed on Friday that Russia has lost India as one of its oil clients following the announcement of US penalties against New Delhi for its continued purchases of Russian crude oil. However, he also indicated that he might not impose secondary tariffs on countries that continue to procure Russian oil.
Trump’s comments came as India has yet to confirm any cessation of oil purchases from Moscow. This follows Washington’s announcement of a 25 percent duty on Russian oil imports, which is set to take effect on August 27. This duty is in addition to a previous 25 percent tariff imposed on Indian goods last month.
The US has threatened sanctions against Moscow and secondary sanctions on countries that buy its oil if there are no efforts to end the ongoing war in Ukraine. Currently, China and India are the two largest buyers of Russian oil.
“Well, he (Russian President Vladimir Putin) lost an oil client, so to speak, which is India, which was doing about 40 percent of the oil. China, as you know, is doing a lot… And if I did what’s called a secondary sanction, or a secondary tariff, it would be very devastating from their standpoint. If I have to do it, I’ll do it. Maybe I won’t have to do it,” Trump stated in an interview with Fox News as he departed for Alaska to meet with Putin.
On August 6, Trump escalated his tariff strategy against India by imposing an additional 25 percent duty on Indian goods, which he later doubled to 50 percent due to New Delhi’s ongoing imports of Russian oil. This move has drawn condemnation from India, which described the tariffs as “unfair, unjustified and unreasonable.” The tariffs are expected to significantly impact sectors such as textiles, marine, and leather exports. Prime Minister Narendra Modi has previously stated that India would not yield to economic pressure.
As a result of these actions, India is set to face the highest US tariff of 50 percent, alongside Brazil, specifically targeting its Russian oil imports. Both Russia and China have criticized Trump for exerting what they consider illegal trade pressure on India.
According to a Bloomberg report, Indian state-owned refiners have ceased purchasing Russian crude following Trump’s announcement, although the Indian government has not officially confirmed this. Indian Oil Corporation Chairman AS Sahney stated that India continues to buy oil based solely on economic considerations and has not halted its purchases from Russia.
In 2022, India emerged as the largest customer of Russian oil after Western nations imposed sanctions on Moscow due to its invasion of Ukraine. A report from the State Bank of India indicated that India’s crude oil import bill could rise by USD 9 billion this financial year and USD 12 billion the following year if the country stops buying Russian crude. The report also suggested that India could consider sourcing oil from Iraq, its top supplier before the Ukraine conflict, followed by Saudi Arabia and the UAE, should it decide to cut off Russian supplies.
Data intelligence firm Kpler Ltd reported that Russian crude is being offered to Indian buyers at lower prices as European Union sanctions and US penalties cloud the demand outlook.
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