KEY POINTS
- India warned that new US tariffs on Russian oil buyers could harm bilateral ties, after the US House passed a bill letting Trump impose duties of up to 100 percent.
- New Delhi vowed to protect its energy security and trade interests, and to keep buying from diverse suppliers based on market dynamics.
- Indian refiners, who have arranged Russian oil for September and October, are seeking relief or a quota, as analysts warn the threat could complicate US-India trade talks.
India has warned Washington that new measures to tariff buyers of Russian oil could damage bilateral ties, hours after the United States moved to punish such purchases, the foreign ministry said.
The warning followed a key vote in Washington. Specifically, the US House of Representatives passed a sweeping sanctions and tariff bill to pressure Russia over its war in Ukraine, sending it to President Donald Trump to sign. Moreover, the measure would let him impose tariffs of up to 100 percent on China, India and others to curb their reliance on Russian energy.
New Delhi vows to protect its interests
India pushed back firmly. According to the foreign ministry, New Delhi has raised the issue with US interlocutors for months and clearly spelled out the implications for the relationship and global energy markets. Furthermore, it said India stays firmly committed to energy security and will keep sourcing from diverse sellers based on market dynamics.
However, officials signalled they will defend Indian commerce. Specifically, the ministry said India is determined to take all necessary measures to protect its trade and economic interests, working closely with industry to manage the fallout.
Refiners seek relief
The stakes are immediate for refiners. According to sources, Indian refiners have already arranged Russian oil for September and October, and two said prices would spike sharply if Trump imposes the tariffs. Consequently, they want the government to press Washington for relief.
Rather than a blanket 100 percent tariff, the refiners want room to wind down existing deals and a possible quota for Indian purchases of Russian crude. Nevertheless, the dispute risks wider damage. Additionally, analysts said the tariff threat could complicate stalled India-US trade talks, with one warning Washington might use it to push India toward an unequal deal. Ultimately, Trade Minister Piyush Goyal will discuss the path forward at a G20 meeting in the United States this month.
