India's Russian Oil Imports to Rise Despite US Tariff Hike

India's Continued Reliance on Russian Oil

India appears determined to maintain and even boost its imports of Russian oil, with expectations of a 10-20% increase in September, despite the recent doubling of tariffs on Indian exports by the Trump administration effective August 27.

As reported by a news agency, Indian refiners are anticipated to ramp up their crude oil purchases in response to ongoing US pressure.

President Trump has implemented a reciprocal tariff of 25%, later increasing it to 50%, in reaction to India's acquisition of Russian crude.

Since the imposition of US sanctions on Russia following its invasion of Ukraine in 2022, India has emerged as one of the largest purchasers of Russian oil.

Current estimates indicate that India was importing between 1.5 and 1.6 million barrels of Russian oil daily by mid-2024, which constituted around 40% of its total crude oil needs.

In contrast, Democrats on the House Foreign Affairs Committee have criticized President Trump for targeting India with tariffs while exempting China and other nations that are purchasing larger volumes of Russian oil.

In a statement, the Committee expressed that Trump's tariff strategy is detrimental to American interests and undermines the US-India relationship, questioning the administration's motives and suggesting that the focus on India seems disconnected from the situation in Ukraine.

They highlighted that if the Trump administration had genuinely intended to enforce secondary sanctions on any country buying Russian oil, it would have been more consistent rather than singling out India, especially since China, the largest buyer of Russian energy, continues to acquire oil at discounted rates without facing similar repercussions.

This statement was shared on social media on the same day that the 50% tariffs on imports from India to the US were enacted, following a draft notice from the U.S. Customs and Border Protection indicating the order's implementation from August 27.