In a move designed to pressure Russia over the ongoing conflict in Ukraine, former U.S. President Donald Trump has imposed significant tariffs on India for its continued purchase of Russian oil. Citing threats to U.S. national security, Trump signed an executive order that went into effect on August 27, levying an additional 25% tariff on imports from India. This is on top of existing tariffs, bringing the total duties on some Indian goods to 50%.

Trump has been transparent about his intention to penalize India for buying Russian oil, stating that India is "not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits". He argues that India's actions undermine U.S. efforts to counter Russia's harmful activities and enable the Russian economy to fund its aggression. By imposing these tariffs, Trump aims to deter countries from supporting Russia's economy through oil imports and impose economic consequences for its actions in Ukraine.

India has become a major purchaser of Russian oil since Western countries began shunning Russian energy following the invasion of Ukraine in 2022. Before the conflict, Russian crude accounted for less than 1% of India's oil imports. However, with discounted rates available, India significantly increased its purchases, with Russia supplying nearly 40% of India's oil imports by 2025. In fiscal year 2025, India imported 88 million metric tonnes of Russian crude, out of a total of 245 million tonnes.

Despite the tariffs, India has not paused its oil purchases from Russia. AS Sahney, chairman of Indian Oil Corporation (IOC), stated that India's buying decisions are solely based on economic considerations. He emphasized that there are no sanctions on Russian crude, and India has not violated any sanctions. According to Sahney, purchases will continue unless sanctions are imposed, and the IOC has not received any instructions from the government to alter purchase volumes.

The Indian government has responded to the tariffs by calling them "unfair" and stating that it will continue to protect its national interests. The Ministry of External Affairs (MEA) issued a statement emphasizing that India's oil imports are based on market factors and are done with the objective of ensuring the energy security of its 1.4 billion people.

The U.S. Treasury Secretary has warned that the Trump administration could impose additional secondary tariffs on India if talks between President Trump and Russian President Vladimir Putin do not yield positive results. These talks, scheduled to take place in Alaska, aim to find ways to end the war in Ukraine.

Experts suggest that the 21-day window before the tariffs go into effect allows for potential negotiations between India and the U.S. However, India's firm stance on prioritizing its economic and energy needs suggests that it is unlikely to significantly alter its oil purchasing strategy unless faced with direct sanctions.