Donald Trump Says Russia “Lost An Oil Client” India After Washington Announced Tariffs

US President Donald Trump has escalated his trade offensive against India, linking New Delhi's purchase of Russian oil to fresh tariff hikes on Indian goods. While Trump claimed that Russia has "lost India as an oil client," Indian officials have not confirmed any halt in crude imports from Moscow.

On August 6, the White House announced a 25% tariff on Indian goods, which was soon doubled to 50%, making India subject to the steepest US tariff rates alongside Brazil. The move is expected to strike at India's textiles, marine products, and leather exports.

Prime Minister Narendra Modi slammed the measures as "unfair, unjustified and unreasonable," vowing that India would not buckle under economic pressure.

Impact on Oil Trade

India has emerged as one of the biggest buyers of Russian crude since Western sanctions took effect in 2022. At one point, nearly 40% of India's oil imports came from Russia, due to discounts offered amid EU restrictions.

While Bloomberg reported that state refiners in India have halted Russian crude purchases following Trump's announcement, no official confirmation has come from New Delhi. Indian Oil Corporation chairman A.S. Sahney clarified that oil purchases are guided purely by economic considerations.

According to the State Bank of India, if India stops sourcing from Russia, its oil import bill could rise by USD 9 billion this fiscal year and USD 12 billion next year, significantly straining the country's trade balance.

Possible Alternatives

If forced to diversify, India could revert to traditional suppliers - Iraq, Saudi Arabia, and the UAE, which together dominated its oil basket before the Ukraine war. Data firm Kpler Ltd noted that Russian barrels are still being sold at lower rates, but mounting US penalties and uncertainty around demand may reduce their competitiveness.

Trump-Putin Equation

Speaking to Fox News before departing for Alaska for a planned meeting with Russian President Vladimir Putin, Trump said:

"Well, he (Putin) lost an oil client, so to speak, which is India... China, as you know, is doing a lot. And if I did what's called a secondary sanction or a secondary tariff, it would be very devastating. If I have to do it, I'll do it. Maybe I won't have to."

The remarks underline Washington's leverage as India and China remain Russia's two biggest energy markets. The upcoming Trump-Putin talks are expected to weigh heavily on the future of global oil trade and the ongoing war in Ukraine.