A practice transports oil tankers in Ajmer on July 7, 2025. Indian exporters are scrambling for choices as they search to mitigate the fallout of U.S. President Donald Trump’s threatened tariff salvo towards the world’s most populous nation.
Himanshu Sharma | Afp | Getty Images
U.S. President Donald Trump‘s commerce advisor Peter Navarro on Monday referred to as on India to stop buying Russian crude oil, accusing the Asian big of undermining worldwide efforts to isolate Vladimir Putin‘s warfare economic system.
Writing in within the Financial Times, Navarro described India’s dependence on Russian oil as “opportunistic,” including that if India “wants to be treated as a strategic partner of the US, it needs to start acting like one.”
“In effect, India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro stated within the op-ed.
His feedback come shortly after commerce negotiations between the U.S. and India, which had been scheduled to happen in New Delhi later this month, had been reportedly called off.
India’s Ministry of Commerce and Industry, and the Office of the U.S Trade Representative didn’t instantly reply to CNBC’s request for feedback.
Earlier this month, the Trump administration said it deliberate to impose a further 25% tariff on India over Russian oil purchases, bringing the whole levies towards the nation to 50%. The cumulative price of duties on India is among the many highest on any of Washington’s commerce companions.
India described the transfer as “extremely unfortunate” on the time, saying the tariffs had been “unfair, unjustified and unreasonable.”
The White House has since warned that secondary levies on India may enhance additional, relying on the outcome of Trump’s peace talks with Putin.
For its half, India has stated it has been unfairly focused for its persevering with commerce with Russia since Moscow’s full-scale invasion of Ukraine in early 2022, amid criticism from each the U.S. and European Union.
In a statement printed Aug. 4, India’s Ministry of External Affairs stated the nation started importing from Russian as a result of conventional provides had been diverted from Europe after the outbreak of the battle.
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation,” India’s Ministry of External Affairs stated.
“However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion,” it added.
Trump’s criticism of India’s oil commerce with Russia represents a transparent shift from the Biden administration, which, together with different G7 nations, Australia and the European Union, established a $60 a barrel price cap in late 2022. The EU has since signaled it has reached an settlement to decrease the worth threshold.
This mechanism sought to restrict Russia’s income from oil gross sales, whereas sustaining some stability in world power markets.
Shilan Shah, deputy chief rising markets economist at Capital Economics, stated India may, in precept, discover suppliers aside from Russia to fulfill its power wants “relatively easily,” with restricted financial influence.
“But we doubt that India would make a wholehearted effort to wean itself off Russian oil. Domestically, it would not play well to be seen caving to Trump’s demands,” Shah said in a be aware printed Aug. 4.
“In addition, Indian policymakers would be reluctant to upend generally cordial (and long-standing) relations with Russia,” he added.
— CNBC’s Vinay Dwivedi contributed to this report.