India Demands 25% Oil Tariff Rollback After Cutting Russian Imports
The Global Trade Research Initiative (GTRI) has called for the immediate withdrawal of a 25% tariff penalty on Indian goods, arguing the measure is unjustified after India substantially reduced crude oil purchases from Russia.
Key Developments
- US President Donald Trump acknowledged India has “very substantially” stopped buying Russian oil
- Trump confirmed tariffs were applied due to India’s earlier Russian imports and promised reductions
- India’s US crude imports surged 66.9% to $5.7 billion between April-September 2025
GTRI’s Position
The think tank insists Washington must revoke the surcharge without delay rather than linking it to broader trade negotiations. Retaining the tariff now penalizes Indian exporters and unfairly targets a partner that has significantly shifted toward American energy suppliers.
GTRI warned that prolonging the measure could weaken goodwill and slow progress in ongoing trade discussions. A swift rollback would honor President Trump’s commitment, reward India’s rapid pivot to US crude and LPG, and boost American energy shipments while removing a bilateral irritant.
Trade Data Supports India’s Case
Between April and September 2025, India’s imports of US petroleum crude jumped 66.9% to $5.7 billion, lifting total US petroleum and product exports to India by 36.3% to $7.5 billion. Meanwhile, India’s exports of petroleum products to the US declined 15% to $2.3 billion, easing concerns about re-exports of Russian crude.
Deepening Energy Cooperation
India has signaled stronger energy ties with the US through multiple deals. Bharat Petroleum Corporation Ltd (BPCL) has contracted 10 million barrels of US Midland crude for delivery between November and March. New Delhi has also finalized its first structured deal to import about 2.2 million tonnes of US liquefied petroleum gas in 2026, covering roughly 10% of the country’s annual LPG requirement.
GTRI noted that India is among the few major economies significantly increasing US oil and LPG purchases. With no remaining strategic, economic, or political rationale for the tariff, Washington should remove the surcharge immediately to demonstrate that US policy remains principled, fair, and responsive to partners who act on American concerns.
