Trump signals secondary tariffs on India over Russian oil may be shelved

At the conclusion of the Trump–Putin summit in Anchorage, US President Donald Trump indicated that the administration might refrain from imposing secondary tariffs on India despite its continued imports of Russian crude oil.

This comment offered a potential easing of growing tensions between Washington and New Delhi.

India is already facing a cumulative 50% tariff on its exports to the US. A 25% reciprocal tariff was enacted on Aug 7, followed by another 25% tariff specifically tied to its purchases of Russian oil, set to take effect from Aug 27.

While Trump did not definitively cancel further sanctions, he said: “If I have to do it, I’ll do it. Maybe I won’t have to.” He also stated that India was no longer considered a client of Russia for oil, a remark suggesting effectiveness of US pressure.

Indian authorities have condemned the tariffs as “unfair, unjustified and unreasonable,” emphasizing that energy imports are critical to national security and noting the continued high levels of Russian oil imports by some Western countries.

The possible suspension of additional tariffs comes amid warnings from U.S. lawmakers. The proposed Sanctioning Russia Act of 2025 could authorize 500% tariffs on countries purchasing Russian energy if Russia refuses to cease hostilities in Ukraine.

Secondary tariffs targeting nations trading with Russia represent a significant escalation in US sanctions policy. Trump relied on authorities like the International Emergency Economic Powers Act (IEEPA) for existing tariffs, and the administration signaled further pressure using economic leverage.

For India, Russian crude forms approximately 35–40% of its oil imports, providing cheaper energy and aiding inflation control. Analysts estimate that forced reduction in Russian oil imports in response to US pressure could increase India's annual import bill by $9–11 billion.

Diplomatic fallout is setting off alarms, as the sharp escalation in tariff policy marks the most severe US–India trade crisis in decades. At its core lies the challenge of balancing strategic autonomy—India’s continued energy relations with Russia—against pressure from Western allies.