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US Threatens India with Tariffs Over Russian Oil Imports

US Threatens India with Tariffs Over Russian Oil Imports

India has saved billions of dollars by importing cheap crude oil from Russia since the start of the Ukraine war. But now, the United States is not pleased with this strategy. The US, citing the Ukraine war, wants India to stop buying oil from Russia.

The US is preparing to introduce a new bill that could impose heavy tariffs on countries that buy oil from Russia. This proposed law could have the biggest impact on India and China. Under the bill, the US wants to gain the right to impose import duties of up to 500 percent on countries trading with Russia.

India Becomes a Major Oil Buyer of Russia

India has imported a large amount of cheap crude oil from Russia since the Russia-Ukraine war. From February 24, 2022, to March 2, 2025, India purchased approximately 112.5 billion euros worth of oil from Russia. This saved India around $25 billion.

The share of oil imports from Russia, which was less than 1 percent before the war, has now increased to between 35 and 45 percent. This data has emerged in a report by the Centre for Research on Energy and Clean Air (CREA).

Senator Lindsey Graham Confirmed This

This bill has been prepared jointly by influential Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Graham said in an interview with ABC News that India and China are strengthening Putin's war economy by buying crude oil from Russia. He said that countries that are buying from Russia and not helping Ukraine would be subject to a 500 percent tariff.

Donald Trump's Support

This bill also has the support of former US President Donald Trump. Graham said that when he was playing golf with Trump, Trump agreed to move the bill forward. Earlier, the bill was introduced in March 2025, but the matter was put on the back burner due to opposition from the White House.

Likely to be Presented in the Senate in August

According to information, this bill may be presented in the US Senate in August. It has the support of a total of 84 senators in the US Congress, which increases its chances of passing.

India Could Suffer Major Losses

If this bill passes, it could be a major economic setback for India. The US is a major export market for India. This tariff could prove to be very detrimental to Indian companies associated with the pharma, textile, and automobile sectors.

If a 500 percent tariff is imposed, the price of Indian goods in the US market will become very high, which could cause Indian products to lag behind in competition.

Oil Provided Relief to India

Due to cheap oil from Russia, India not only got energy security but also reduced import costs. India refined this oil and increased the export of petroleum products in the international market, which brought in dollars.

During the Ukraine war and the Middle East crisis, India kept the prices of petrol and diesel stable in the domestic market, which is credited to cheap Russian oil.

The US Doesn't Like India's Strategy

India's purchase of oil from Russia is irking the US. The US wants India not to buy oil from Russia and to stand in favor of Ukraine. That is why the weapon of tariffs is now being raised.

This step makes it clear that the US wants to put economic pressure on Russia and is preparing to take strict action against countries that trade with it.

Impact on India-US Trade Agreement

This controversy has come to light at a time when the trade agreement between India and the US is in its final stages. US Treasury Secretary Scott Basent recently said that the trade deal is "very close." Meanwhile, the Indian delegation is continuously meeting with US officials in Washington.

But differences between the two sides over agricultural products still remain. In such a situation, the threat of tariffs on buying oil from Russia can create more difficulties in the way of the trade agreement.

Trump's Role Again Becomes Decisive

Donald Trump's role has also been interesting in this entire episode. Earlier, he pressured to change the harsh words of the bill, but now he has given it the green light.

Graham said that Trump now believes that the bill can put pressure on Russia and bring the US to a b position globally.

Attempt to Keep European Countries Separate

Graham also said that he has proposed to exclude countries that are helping Ukraine from the effect of this bill to address the concerns of US European allies. That is, this tariff will not apply to Europe, but countries like India and China may have to face it.

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