On 6/8, Trump issued an executive order imposing an additional 25% tariff on imports from India, effective 27/8, citing the country's continued crude oil trade with Moscow. "I have determined that the government of India is directly or indirectly importing oil from Russia," Trump said on 6/8.

The day before, on Tuesday (5/8), he had threatened "significant" tariff increases on Indian goods if the country didn't stop buying Russian oil.

US president Donald Trump and Indian prime minister Narendra Modi shake hands at the White House on 13/2. Photo: Reuters

US president Donald Trump and Indian prime minister Narendra Modi shake hands at the White House on 13/2. Photo: Reuters

Last week, Trump announced a 25% import tariff on the South Asian economy. This brings the total tariffs on Indian goods entering the US to 50%, among the highest levied on US trading partners.

According to CNBC, this is the latest sign that Trump is making good on his threat to punish countries buying Russian oil, as he has increasingly intensified his rhetoric on the Ukraine conflict in recent weeks.

India is the world's third-largest oil importer and consumer. In the first half of the year, it imported about 1.75 million barrels of Russian oil per day, a 1% increase compared to the same period in 2024. Russia was the largest supplier during this period, accounting for about 35% of the total supply. In June alone, India's imports of Russian oil increased by 17.4% compared to May, reaching about 2 million barrels per day.

Private refineries account for nearly 60% of the Russian oil imported by India in the first half of 2025. The remaining portion is purchased by four state-owned refineries, which control over 60% of the country's total refining capacity of 5.2 million barrels per day.

However, in late July, sources told Reuters that state-owned refineries had stopped buying Russian oil due to decreased discounts and Trump's threats against countries buying from Russia.

Phien An (Reuters, CNBC)