India has expressed concern as the US is mulling over an extreme 500% tariff on nations importing oil from Russia, including India. Indian EAM S. Jaishankar, who is in Washington on a visit, stated that India has approached US lawmakers and highlighted its energy security concerns. The suggestion, put forward by Republican Senator Lindsey Graham and supported by President Donald Trump, specifically singles out heavy importers of Russian oil such as India and China.
If approved, the bill would adversely affect Indian exports to the US and turn over an already sensitive trade balance. Meanwhile, India is pressing to seal a trade agreement with the US that may reduce current tariffs and avert a new 26% increase announced by Trump in April.
India Flags Energy Security Concerns
S. Jaishankar acknowledged that Indian diplomats and embassy staff have made active approaches to Senator Graham. Addressing the media in Washington, he stated that India had made its reliance on Russian oil and its overall energy requirements very clear. “We will have to cross that bridge when we come to it, if we come to it,” Jaishankar stated.
He stressed that India closely tracks developments in the US Congress, especially those that could directly affect Indian interests. The minister also attended the Quad Summit during his US visit, where energy and strategic concerns were in focus.
Trump Backs Massive Tariff Hike
The bill has picked up pace as part of the Trump administration’s overall efforts to put pressure on Russia regarding the war in Ukraine. Senator Graham, during the introduction of the bill, charged India and China with purchasing 70% of President Putin’s oil. If the bill is passed, the legislation would impose a 500% import tariff on products of nations that engage in trade with Russia.
This would have a huge impact on India, which is dependent on Russia for almost 40–45% of its crude oil requirement. Indian Russian oil imports jumped to 1.96 million barrels a day in May, the highest since the past ten months.
India Races to Finalise Trade Deal
India is in the final stages of negotiating a trade agreement with the US. The objective is to protect Indian exports from the planned 26% tit-for-tat tariffs announced by Trump. It could lower US tariffs on Indian products by a great extent if the deal is concluded successfully.
But the threat of a 500% tariff on Russian oil imports is something different. Energy security and trade interests are at stake now, and India has to thread a delicate diplomatic needle.
