India’s reliance on Russian oil is not the foundation of its economy, and the country has started diversifying its energy imports, said Jamieson Greer, U.S. Trade Representative. Speaking at The Economic Club of New York last week, Greer emphasized that India will make independent decisions, and Washington isn’t dictating who countries can or cannot engage with.
Greer noted that although India has long maintained ties with Russia, its large-scale purchase of discounted Russian oil for consumption, refining, and resale only began in the last two to three years.
Former U.S. President Donald Trump has imposed a 50% tariff on India, including 25% in response to India’s Russian oil purchases. Trump has repeatedly claimed that continued oil imports by China and India are indirectly financing Russia’s war in Ukraine.
Greer stated the tariffs have been in effect for several weeks and explained that India enjoys a $40 billion trade surplus with the U.S. He described India’s approach as pragmatic.
Of the 50% tariff, 25% is reciprocal and part of ongoing trade negotiations, while the other 25% specifically targets India’s increased Russian oil imports.
Despite a slight dip in September, Russia remains India’s top crude supplier, accounting for over one-third of total imports.