Trump Threatens New Tariffs On India Over Russian Oil Purchases

 

U.S. President Donald Trump is warning of a potential 25% tariff increase on India, along with higher tariffs on other countries buying Russian oil, as part of a broader push to pressure Moscow into ending its war in Ukraine. India has denounced the move as “unjustified,” arguing it is being unfairly singled out while other nations maintain significant trade ties with Russia.

While U.S.-Russia trade has dropped about 90% since the invasion began, America still imported $3 billion worth of Russian goods in 2024, according to official U.S. trade data. The European Union, despite sanctions and bans on certain Russian energy products, imported $41.9 billion in goods from Russia last year—down sharply from pre-war levels.

EU imports from Russia have fallen 86% since early 2022, shifting to alternative suppliers like Canada and the United States. Analysts note that trade tensions and tariff disputes risk undermining coordinated efforts to economically isolate Russia.

Trump is set to meet Russian President Vladimir Putin in Alaska on Friday. U.S. Treasury Secretary Scott Bessent said India could face additional tariffs if the talks do not yield progress.

Key areas of U.S. trade with Russia

• Fertilizer: $927 million imported in the first half of 2025, with reliance on key products such as urea and potash.

• Palladium: $594 million imported so far this year, used in electronics and catalytic converters.

• Uranium & Plutonium: $755 million imported in 2025 to date, vital for energy and defense sectors.

Key areas of EU trade with Russia

• Oil: Down to $1.72 billion in Q1 2025 from $16.4 billion in Q1 2021.

• Natural Gas: $5.23 billion in Q1 2025, with Russia’s LNG market share falling slightly.

• Iron & Steel: $850 million in Q1 2025, about half of pre-war volumes.

• Fertilizer: $640 million in Q1 2025, largely unchanged since 2021.

• Nickel: $300 million in Q1 2025, though reliance has shifted toward other nations.

Many Western companies have withdrawn from Russia, but some remain, contributing modestly to the Kremlin’s revenues and helping sustain certain aspects of daily life. Analysts argue that full corporate exits would increase pressure on Moscow and challenge perceptions of economic stability.

By contrast, India has expanded its economic relationship with Russia, importing $67 billion worth of goods in 2024—about $53 billion of which was crude and refined petroleum. Before the war, that figure stood at just $8.7 billion in 2021.