Tariff threat over Russian oil puts India at crossroads: GTRI

As the United States steps up pressure on countries buying Russian oil, India faces a critical policy choice, with continued ambiguity likely to invite higher trade costs, according to a report by the Global Trade Research Initiative (GTRI).

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On January 4, US President Donald Trump warned that Washington could raise tariffs on Indian imports if New Delhi does not stop purchasing Russian crude. The warning comes even as Indian exports to the US are already subject to a 50 per cent import tariff, half of which is directly linked to India's Russian oil purchases, the report noted.

The pressure is being reinforced in the US Congress, where Senator Lindsey Graham is pushing legislation to impose secondary tariffs on countries buying Russian oil and gas if Moscow fails to agree to a ceasefire in Ukraine within 50 days.