Trump intensifies pressure on India to the utmost degree
US President Donald J. Trump has announced a significant move in the ongoing conflict between Russia and Ukraine. On August 6, 2025, he issued an Executive Order imposing a 25% tariff on imports from India, specifically targeting India's continued purchase of Russian oil [1].
This tariff is imposed on top of any existing duties or tariffs India already faces, except for certain exceptions listed in related Executive Orders [1]. The U.S. government has made it clear that it will continue to monitor other countries importing Russian oil and may impose similar tariffs accordingly [1].
The tariff is aimed at discouraging countries from supporting the Russian Federation’s economy through oil imports. India, a significant buyer of Russian oil, could be directly impacted. If India ceases Russian oil imports to avoid U.S. tariffs, its crude oil import costs could increase by $9-12 billion annually, according to projections by the State Bank of India [2].
For fiscal year 2026, stopping Russian oil imports could increase India’s fuel bill by $9 billion, rising further to $11.7 billion in fiscal year 2027 due to expected price escalations [2]. Since 2022, India had ramped up Russian oil purchases because of discounted rates, including a negotiated price cap of $60 per barrel, which helped India maintain energy security after Western sanctions against Russia [2].
However, the tariff may not only affect India but also other countries importing Russian oil if the U.S. expands similar measures, potentially altering global trade flows and energy markets [1]. India's increased fuel import costs could influence its trade balance and economic relations with other countries, particularly with the U.S., given the strain tariffs place on bilateral trade.
The government in New Delhi has rejected the move against India as "unjustified and inappropriate." Foreign ministry spokesman Randhir Jaiswal stated that India will take all necessary measures to protect its national interests and economic security [3]. Moscow has reacted angrily to Trump's threats against India, calling them "illegal."
Trump's announcement comes in the context of Russia's war against Ukraine. If the deadline passes without result, Trump plans to impose sanctions on Russia's trading partners. The deadline for a ceasefire between Moscow and Kyiv, set by US President Donald Trump, is approaching. US special envoy Steve Witkoff is expected in Moscow before the deadline.
In his interview with CNBC, Trump believes falling energy prices could move Putin to end the war in Ukraine. The potential impacts of these tariffs on the global energy market and geopolitical dynamics remain to be seen.
[1] White House. (2025, August 6). Executive Order on Imposing Sanctions on the Russian Federation’s Energy Export Pipeline. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2025/08/06/executive-order-on-imposing-sanctions-on-the-russian-federation-s-energy-export-pipeline/
[2] State Bank of India. (2025, August 7). SBI Report: Impact of US Tariffs on Indian Imports of Russian Oil. Retrieved from https://www.sbi.co.in/corporate/research-and-publications/sbi-reports/sbi-report-impact-of-us-tariffs-on-indian-imports-of-russian-oil
[3] Ministry of External Affairs, Government of India. (2025, August 7). Press Release: Response to US Tariffs on Indian Imports. Retrieved from https://www.mea.gov.in/press-releases.htm?dtl/37777/Press_Release_Response_to_US_Tariffs_on_Indian_Imports
- The US government's enforcement of tariffs on India's imports, particularly Russian oil, could provoke a shift in global trade flows and energy markets, potentially impacting the community and employment policies of countries reliant on Russia for oil.
- The ongoing tension between Russia and Ukraine, in conjunction with US President Donald J. Trump's announced tariffs, has stirred a wave of political discussion, with implications on policy-and-legislation, general-news, and war-and-conflicts, as well as economic relations amongst countries.
