Dhaka,  Thursday
15 January 2026 , 02:46

Donik Barta

Trump Considers a 500% Tariff on India Over Russian Crude Oil Purchases

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Published At: 12:26:00pm, 08 January 2026

Updated At : 12:26:00pm, 08 January 2026

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The United States is reportedly evaluating a dramatic new trade maneuver that could impose tariffs of up to 500% on countries purchasing discounted crude oil from Russia, placing India at the center of a growing geopolitical and economic confrontation fueled by the continuing fallout of the Russia-Ukraine war. The move reflects Washington’s belief that cheap Russian oil indirectly finances Moscow’s war effort, undermining Western sanctions and strategic interests throughout the Euro-Atlantic sphere. This proposed measure, which also targets major emerging economies like China and Brazil, exceeds prior tariff hikes implemented against Indian exports under the Trump administration and could reshape global trade dynamics if enacted. For India, the issue is not merely diplomatic but tied to domestic energy security and consumer affordability, as New Delhi has repeatedly stated that price and availability—not geopolitical pressure—will determine its energy partnerships. Meanwhile, Washington is increasing diplomatic leverage alongside commercial pressure to steer India toward alternative fuel sources as part of its Indo-Pacific strategy. Analysts warn that a 500% tariff would have cascading implications across global markets, from crude benchmarks and supply logistics to the strategic positioning of energy-dependent economies, signaling a new phase of competition where trade tools, sanctions, and diplomacy converge around oil, power, and global realignment.

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