US-India tensions rise over Russian oil imports amid tariff threats

October 20, 2025 Hot from the Oven Valli Sarvani

Tensions have escalated between the United States and India over New Delhi’s continued imports of discounted Russian oil, with US President Donald Trump reiterating claims that India agreed to reduce these purchases, a statement firmly denied by Indian officials.

Speaking aboard Air Force One, President Trump said he had spoken with Prime Minister Narendra Modi, who assured him that India would stop buying Russian oil.

However, India’s Ministry of External Affairs quickly refuted this claim, stating they were unaware of any such conversation between the two leaders.

Despite the denial, President Trump warned that “massive tariffs” would remain in place, or possibly increase, on Indian goods if New Delhi did not cut back its trade with Russia.

He said India would continue to face heavy penalties unless it complied and insisted that the country would keep paying tariffs it did not want.

At present, the United States has imposed a 50% tariff on a wide range of Indian exports, along with a 25% penalty on transactions linked to Russian oil. These steps are part of the US efforts to cut off funding for Russia’s war in Ukraine.

India has defended its position, emphasising that its priority is to safeguard the interests of Indian consumers.

Indian officials pointed out that Russian oil is sold at a discount, and since Western sanctions were imposed on Moscow in 2022, India has become the largest buyer of seaborne Russian oil.

Indian sources said oil imports from Russia have remained steady and are expected to increase by 20% this month to 1.9 million barrels per day. Orders for November and December have already been placed, making any immediate reduction unlikely before January.

While a White House official claimed India had halved its purchases of Russian oil, Indian analysts noted no significant drop in actual import volumes.

The situation remains tense, with President Trump indicating that tariffs on Indian exports worth billions of rupees could rise if India does not adjust its energy trade practices in line with US demands.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on March 10, 2017