The Donald Trump administration should with immediate effect withdraw the 25% penal tariffs on India for its crude oil trade with Russia, says the Global Trade Research Initiative (GTRI) in its latest note. In August this year, Trump imposed a 25% additional tariff on India - over and above the 25% ‘reciprocal’ tariff - claiming that India’s crude oil imports from Russia are helping finance the latter’s war against Ukraine.
GTRI founder Ajay Srivastava argues that since then India has stepped up its energy procurement from the US and its Russian crude oil imports have also come down. GTRI has urged the United States to eliminate without delay the supplementary 25% "Russian oil" duty imposed on goods from India, noting that the original rationale no longer applies following India's significant reduction in Russian crude purchases.
Why Trump should remove 25% Russian oil tariffs on India
GTRI has cited Trump’s recent statements to substantiate its argument. Trump has acknowledged that India has "very substantially" decreased Russian oil imports. He has also confirmed the surcharge was implemented specifically for this reason and indicated "we're going to be bringing the tariffs down."
According to GTRI, since India has already responded to American concerns, the United States should promptly remove the tariff instead of linking it to the trade deal.
Also Read |
Trump sanctions a 'crude' shock! Russia oil shipments to India drop by 66%; experts expect ‘noticeable drop’ in near termGTRI contends that continuing the surcharge penalises Indian exporters unnecessarily, particularly as India has demonstrated a clear shift towards American energy sources.
“Maintaining the tariff despite India meeting US expectations, it warns, undermines goodwill and risks slowing already delicate trade negotiations,” says GTRI.
A prompt removal of restrictions, according to GTRI, would fulfill Trump's assurance, acknowledge India's quick transition to American crude and LPG, enhance US energy sales, and ease tensions in discussions.
This action would also establish equal treatment with other major economies, notably China, which continues to purchase significantly higher quantities of Russian oil without facing sanctions.
India’s import of Petroleum crude, product from US-US$ MillionS.No.
| Commodity
| Sep-24
| Sep 2025
| %Growth
| Apr- Sep2024
| Apr- Sep2025
| %Growth
|
Import from USA
| Petroleum Products
| 335.59
| 261.68
| -22
| 2,097.52
| 1,813.43
| -13.5
|
| Petroleum: Crude
| 607.85
| 672.02
| 10.6
| 3,417.32
| 5,702.25
| 66.9
|
| Total Of Above
| 943.44
| 933.7
| -1
| 5514.84
| 7515.68
| 36.3
|
India’s exports to USA
| Petroleum Products
| 198.69
| 251.3
| 26.5
| 2,713.91
| 2,304.71
| -15.1
|
Importantly GTRI notes that data supports India's position: During April-September 2025, India's US petroleum crude purchases increased by 66.9% to $5.7 billion, contributing to a 36.3% rise in total US petroleum and product exports to India, reaching $7.5 billion.
At the same time, India's petroleum product exports to the United States decreased by 15% to $2.3 billion, alievating previous worries about India processing Russian crude for re-export to the US market.
India has demonstrated increased commitment to American energy suppliers: Bharat Petroleum Corporation Ltd. has agreed to purchase 10 million barrels of US Midland crude for delivery between November and March, whilst New Delhi has established its inaugural structured agreement to import approximately 2.2 million tonnes of US liquefied petroleum gas in 2026, constituting roughly 10% of its yearly LPG needs.
Crude shock
According to GTRI, India is now one of the few major economies sharply increasing its purchases of US oil and LPG.
“With no remaining strategic, economic, or political rationale for the surcharge, Washington should withdraw the 25% tariff immediately rather than tie its removal to a protracted trade deal,” says GTRI.
“Such a move would demonstrate that US policy remains principled, responsive, and fair to partners that have acted on American concerns,” it adds.
In the meantime, Indian imports of Russian oil have decreased significantly in November, with refiners exercising caution due to Trump’s sanctions affecting Rosneft and Lukoil, Russia's primary crude suppliers.
Also Read |
‘So close so many times…’: Trump admin official on India-US trade deal; points to ‘complicated situation’ due to India’s Russia tiesAccording to Kpler, a global data and analytics firm, vessels carrying Russian crude to India averaged 672,000 barrels per day (bpd) from November 1-17, showing a substantial decline from 1.88 million bpd in October. Russia's overall export loadings across destinations decreased by 28% to 2.78 million bpd in November.
A significant observation is that approximately 50% of loaded Russian tankers are currently travelling without specified destinations, indicating difficulties in securing buyers and sanctions-compliant shipping routes. Other major buyers have also reduced imports, with China's loadings declining by 47% to 624,000 bpd, whilst Türkiye's imports decreased by 87% to 43,000 bpd.
Also Read |
Busting myths! H-1B visa holders are not ‘cheap labour’ - why foreign workers are important for US