100% tariffs: Why India may ignore Trump threat to continue buying Russian crude oil
India faces potential 100% tariffs on Russian crude oil imports due to proposed US legislation, despite previous trade agreements and sanctions. The article explores the geopolitical tension between India's energy needs and US foreign policy objectives regarding Russia.
Why it matters
The potential for high tariffs highlights the complex balancing act India must perform between maintaining energy security and navigating US-led sanctions.
On August 5, 2025, US President Donald Trump announced 25% penal tariffs on India for its purchase of crude oil from Russia. One year later, India faces the prospect of up to 100% tariffs for its Russian crude oil purchases! A lot has changed in the last year, yet when it comes to tariffs related to Russian crude - the Trump administration seems to have come full circle.India faced with 50% tariffs (25% reciprocal and 25% penal) did not stop procuring Russian crude. In October 2025, the US announced sanctions on some Russian oil firms. This led to a decline in oil purchases from Russia as lower quantities of non-sanctioned crude were available. In February this year, India and the US announced an interim trade deal framework agreement, which reduced tariffs on India to 25% and also removed the 25% penal tariffs for Russian crude purchases.
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