Donald Trump signals no secondary US tariffs on India over Russian oil
Noor Mohmmed
16/Aug/2025
-
Donald Trump indicated the US may not enforce secondary tariffs on India for importing Russian oil, easing concerns for New Delhi.
-
The signal marks a softer trade approach towards India even as Washington continues strong sanctions against Russia.
-
India’s energy security and growing US-India partnership appear to be key factors behind Trump’s calibrated stance.
Former US President Donald Trump, who remains one of the most influential figures in American politics, has indicated that the United States may not impose secondary tariffs on India over its continued imports of Russian oil. This development comes amid ongoing debates in Washington over how far to extend sanctions aimed at weakening Moscow’s revenues while balancing strategic ties with key partners like India.
Trump’s Remark and Its Context
Speaking during a policy interaction, Trump suggested that while the US remains committed to sanctioning Russia over its war in Ukraine, India should not be penalised through secondary tariffs for maintaining crude oil purchases from Moscow. His statement is significant because India has emerged as one of the largest buyers of discounted Russian crude, especially after Western countries imposed restrictions on Moscow’s energy exports.
Trump’s signalling suggests that Washington may prioritise its broader strategic partnership with New Delhi over punitive economic measures. Analysts note that his remarks are aimed at reinforcing India’s importance as a key ally in the Indo-Pacific region and as a counterweight to China.
Why Secondary Tariffs Matter
Secondary tariffs, often referred to as secondary sanctions, are penalties imposed on third countries or companies that continue to do business with a sanctioned nation. In this case, the idea was to discourage nations like India from buying Russian crude by making such transactions economically painful.
For India, such measures would have posed a serious challenge to energy security, as Russian oil now accounts for a large portion of its imports. New Delhi has consistently defended its position, arguing that as a developing country, affordable energy supplies are critical for economic stability and growth.
Balancing Sanctions with Strategic Partnerships
Trump’s position underscores a wider dilemma facing Washington. On one hand, the US wants to ensure sanctions on Russia are effective. On the other hand, it recognises that alienating India could be strategically counterproductive, especially given the importance of India in regional security frameworks like the Quad grouping (US, India, Japan, Australia).
By signalling leniency towards India, Trump appears to be sending a message of reassurance that the US values the partnership enough to accommodate New Delhi’s unique energy requirements.
Impact on India-US Relations
India has been carefully balancing its ties with both the West and Russia. While it continues to buy Russian oil, it has also significantly expanded its defense, trade, and technology cooperation with the United States. Any move to impose secondary tariffs would have risked straining this growing relationship.
Trump’s latest remarks are therefore being read in New Delhi as a positive signal, suggesting that the US may take a more nuanced approach, avoiding punitive action while continuing to pressure Moscow in other ways.
Geopolitical Implications
If the US ultimately decides not to impose secondary tariffs on India, it would represent a major exemption and could encourage other countries to seek similar relief. However, Washington may justify India’s case by pointing to its unique geopolitical role and its critical partnership in countering China’s growing influence.
For Russia, India’s continued purchases remain a vital lifeline, helping offset the loss of European markets. For the US, however, the priority remains ensuring that sanctions weaken Moscow’s revenues without damaging relations with key allies.
Conclusion
Donald Trump’s signal that the US may not impose secondary tariffs on India for Russian oil imports marks an important diplomatic gesture. It acknowledges India’s energy needs, economic realities, and strategic importance, while also highlighting Washington’s flexibility in applying sanctions.
For New Delhi, the statement is a welcome relief, suggesting that its balancing act between Moscow and Washington may continue without immediate financial penalties. For the world, it is yet another sign that geopolitics often requires compromise between principles and partnerships.
The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.
The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.
Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.
Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.
Related News
Disclaimer
The information provided on this website is for educational and informational purposes only and should not be considered as financial advice, investment advice, or trading recommendations.
Trading in stocks, forex, commodities, cryptocurrencies, or any other financial instruments involves high risk and may not be suitable for all investors. Prices can fluctuate rapidly, and there is a possibility of losing part or all of your invested capital.
We do not guarantee any profits, returns, or outcomes from the use of our website, services, or tools. Past performance is not indicative of future results.You are solely responsible for your investment and trading decisions. Before making any financial commitment, it is strongly recommended to consult with a qualified financial advisor or do your own research.
By accessing or using this website, you acknowledge that you have read, understood, and agree to this disclaimer. The website owners, partners, or affiliates shall not be held liable for any direct or indirect loss or damage arising from the use of information, tools, or services provided here.