Trump Warns India of 500% Tariffs as Russian Oil Imports Reach One-Third of Total Crude
WASHINGTON: US President Donald Trump has warned Indian Prime Minister Narendra Modi that the United States could “raise tariffs on them very quickly,” signalling renewed pressure on India over its continued imports of Russian crude. The threat comes as Washington considers a 500 per cent tariff on countries purchasing Russian oil, escalating trade tensions between the two nations.
India’s reliance on Russian oil has surged dramatically over the past decade. In FY2016-17, Russia was absent from India’s crude import basket, with Iraq and Saudi Arabia supplying $3.6 billion and $3.9 billion worth of oil respectively, and other nations such as Kuwait, Iran, and Nigeria contributing $13.4 billion. US oil exports to India were negligible at the time.
By contrast, Russia emerged as India’s top oil supplier in recent years, shipping $31 billion in 2022-23, $46.5 billion in 2023-24, and $50.3 billion in 2024-25. US exports lagged at $6.5 billion in 2024-25, while Gulf nations’ share of India’s crude imports declined.
In the current fiscal year (2025-26), India imported $94 billion worth of crude between April and November, with Russia contributing $30.8 billion, roughly one-third of the total. Monthly data shows volatility: Russia’s share peaked at 38.8 per cent in May, fell to 29.8 per cent in July, and rebounded to 36.6 per cent in August. Imports from Russia in October and November hovered around 31-34 per cent, reflecting sustained reliance despite US pressure.
The warning follows previous US tariff actions. In August 2025, the United States imposed a 25 per cent penalty on Indian imports linked to Russian oil, later increasing it to 50 per cent. A proposed 500 per cent tariff would significantly raise the stakes, potentially compelling India to reconsider its oil sourcing strategy.
