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Did Trump’s 25% Tariff Push India to Cut Russian Oil? US Claims Spark Diplomatic Debate

As Washington tightens pressure over Russia’s war in Ukraine, India balances energy security, diplomacy, and tariff threats.

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The United States has intensified pressure on India over its purchases of Russian crude oil, with US Treasury Secretary Scott Bessent claiming that New Delhi has scaled back or halted imports following trade action taken by President Donald Trump.

Speaking at the World Economic Forum, Bessent linked India’s alleged move to the imposition of a 25 per cent tariff by Washington and to proposed US legislation that could levy tariffs as high as 500 per cent on countries continuing to trade with Russia.

However, the Indian government has not confirmed any such cut in imports, stating instead that it is closely tracking developments related to the proposed bill. While Washington argues that revenues from Russian oil help fund Moscow’s war in Ukraine, India maintains that its energy procurement decisions are driven by global market conditions and the need to ensure affordable and secure energy for its population.

US Tariffs, Pressure, India Responds

Speaking in an interview with Fox Business on the sidelines of the World Economic Forum, US Treasury Secretary Scott Bessent said that India began importing large volumes of discounted Russian oil after the Ukraine war broke out but later “geared down and stopped” following President Trump’s decision to impose a 25 per cent tariff.

His remarks came during a broader discussion on a proposed Russian Sanctions Bill in the US Congress, which seeks to impose sweeping penalties on countries that continue to engage in trade with Moscow. According to Bessent, the tariff was part of a strategy to push major economies to rethink their commercial ties with Russia amid the ongoing conflict.

India, however, has offered a more cautious and non-committal response. External Affairs Ministry spokesperson Randhir Jaiswal acknowledged reports about the proposed US legislation, saying New Delhi was “aware of the bill and closely following developments”, but did not confirm that India had stopped buying Russian oil.

Indian officials have consistently refrained from endorsing claims of a complete halt, instead reiterating that energy sourcing decisions are guided by market dynamics, availability, and affordability. The absence of an official confirmation has highlighted a growing gap between US assertions and India’s stated policy position.

Sanctions Bill, Strategic Messaging, And Diplomatic Undercurrents

The proposed legislation at the centre of the controversy has been authored by US Senator Lindsey Graham, a vocal advocate of tougher measures against Russia. The bill targets countries that continue to buy and resell Russian oil and petroleum products, authorising tariffs of up to 500 per cent on such trade.

India and China, currently among the largest buyers of Russian crude, have been named as key countries affected by the proposal. Graham has claimed that President Donald Trump has approved the bill in principle, signalling a more confrontational US approach towards nations maintaining economic ties with Moscow.

Adding to the complexity, Graham said earlier this week that Indian Ambassador to the US Vinay Kwatra had informed him that India was reducing its purchases of Russian oil and had requested him to convey a message to President Trump seeking a relaxation of tariffs.

While this claim has not been officially confirmed by New Delhi, it has fuelled speculation that India may be adjusting its import strategy to manage diplomatic and economic risks. Washington has repeatedly argued that revenues from Russian oil exports are financing Moscow’s military campaign in Ukraine, framing the sanctions bill as a moral and strategic necessity rather than a purely economic measure.

Sanctions, Strategy, and Diplomatic Signalling

India has repeatedly defended its purchase of Russian crude since the Ukraine conflict began, pointing out that it does not violate any international sanctions regime. Officials have stressed that India imports oil from multiple sources to ensure energy security for its population of over 1.4 billion people.

Russian crude, often sold at a discount due to Western sanctions, has helped Indian refiners manage costs and stabilise domestic fuel prices at a time of global volatility.

Recent reports suggesting that India has begun trimming Russian oil imports have been attributed by analysts to a combination of factors, including logistical challenges, evolving price dynamics, and renewed supplies from traditional producers in West Asia.

While Russia remains one of India’s largest crude suppliers, fluctuations in its share of total imports are not uncommon and do not necessarily indicate a strategic shift. Indian authorities have maintained that decisions on energy sourcing are commercial rather than political, rooted in the need to balance affordability, supply security, and economic growth.

The Logical Indian’s Perspective

This episode underscores the fragile balance between geopolitics and global economic interdependence. While the United States’ concern about funding a prolonged war in Ukraine is understandable, the increasing reliance on punitive tariffs and economic pressure risks hardening positions rather than encouraging meaningful dialogue.

India’s insistence on energy security reflects the realities faced by developing economies that must prioritise the welfare of their people alongside global responsibilities. Sustainable peace cannot be achieved through coercion alone; it requires empathy, dialogue, and an appreciation of differing national contexts.

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