In a move that has escalated trade and geopolitical tensions, US President Donald Trump announced that India’s purchases of Russian oil will now be subject to a combined 50 per cent tariff, calling it a big blow to Moscow’s struggling economy.

Speaking at a press conference at the White House on August 12, 2025, Trump revealed that the United States had imposed 25 per cent reciprocal tariffs on India and an additional 25 per cent duty on its imports of Russian oil, bringing the total to 50 per cent.

This announcement came just days before Trump is set to meet Russian President Vladimir Putin in Alaska for high-level discussions. Trump described India as one of Russia’s “largest or second-largest oil buyers” and suggested that the tariffs were having a serious economic impact on the Kremlin.

Trump on Russia’s Economic Struggles

Trump said Russia’s economy is “not doing well” and had been “very well disturbed” by a combination of US trade duties and global market pressures.

“I think Russia has to get back into building their country. It’s a massive country… They have tremendous potential in Russia to do well. They’re not doing well. Their economy is not doing well right now because it’s been very well disturbed by this,” Trump stated.

He emphasised that hitting one of Russia’s main oil customers with such a high tariff was “a big blow,” pointing directly to India’s purchases of Russian oil.

Meeting with Putin in Alaska

Trump is scheduled to meet Putin on Friday in Alaska, describing the Russian leader’s decision to visit the US as “very respectful.” He expressed optimism that the talks could lead to constructive discussions on trade and possibly other global issues.

“I thought it was very respectful that the President of Russia is coming to our country, as opposed to us going to his country or even a third-party place. But I think we’ll have constructive conversations,” he said.

Trump added that he expects to know “within the first two minutes” of the meeting whether a US Russia trade deal is possible.

Possibility of Normal Trade with Russia

When asked about the prospects of normal trade relations between the US and Russia, Trump replied, “I do.” He highlighted Russia’s vast natural resources, suggesting that if Putin focused on business rather than war, there could be economic progress.

“Russia has a very valuable piece of land. If Vladimir Putin would go toward business instead of toward war, you know, it’s a warring nation. That’s what they do. They fight a lot of wars. A friend of mine said Russia is tough because they just keep on fighting,” Trump remarked.

Talks Involving Ukraine

Trump also disclosed plans to engage with Ukrainian President Volodymyr Zelenskyy, stating that his “next meeting will be with Zelenskyy and Putin, or Zelenskyy and Putin and me.” He noted that he is open to participating in a meeting between the two leaders if needed, aiming to set up direct dialogue between them.

Strategic and Economic Implications

The imposition of 50 per cent tariffs on India’s Russian oil imports marks a significant escalation in US trade measures, with ripple effects for global energy markets. For India, which relies on Russian oil for a significant portion of its imports, the increased duties could push up costs and affect trade flows.

For Moscow, losing competitiveness in one of its top oil export markets is another economic setback, especially amid existing sanctions and declining global demand in certain sectors.

The upcoming Trump-Putin meeting in Alaska is expected to be closely watched by world leaders, energy markets, and diplomatic analysts, as it could shape the next chapter in US Russia relations. The added dimension of India’s role in this geopolitical equation underscores the complexity of balancing trade, energy security, and international diplomacy.

With tensions high and economic stakes even higher, the Alaska talks may determine whether these tariffs remain a long-term fixture or become part of a broader negotiation toward easing global trade frictions.

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