US Warns India of Increased Sanctions Over Russian Oil Trade

The Donald Trump administration has issued a stark warning to India, suggesting that secondary tariffs could rise if discussions between President Trump and Russia's Vladimir Putin in Alaska do not yield favorable outcomes. Currently, India faces a 50% tariff on its exports to the US, with an additional 25% tariff specifically targeting its crude oil trade with Russia.

India's Stance on Russian Oil Imports

India, the world's third-largest oil consumer, has significantly increased its purchases of Russian crude oil, attracted by the substantial discounts available since the onset of the Russia-Ukraine conflict. The US views these purchases as indirectly supporting Russia's war efforts, prompting Trump to demand a halt to such transactions.

Potential for Negotiations

With the new 25% secondary tariff on India's crude oil trade with Russia set to take effect on August 27, experts believe there's a 21-day window for potential negotiations between India and the US. India has vehemently opposed these tariffs, arguing that its oil imports are driven by market factors and the need to ensure energy security for its 1.4 billion people.

Europe's Role in Sanctions

US Treasury Secretary Scott Bessent has also called on the European Union to either support the imposition of secondary tariffs on countries trading with Russia or refrain from commenting on the US's approach to resolving the Russia-Ukraine conflict. Bessent emphasized the importance of European solidarity in enforcing stricter measures against Russia.