India has warned the United States that new tariff measures targeting countries that continue to purchase Russian oil could affect bilateral relations, as New Delhi reaffirmed its commitment to protecting the country’s energy security and economic interests. The warning came after the US House of Representatives passed legislation that would allow President Donald Trump to impose tariffs of up to 100% on countries such as India and China over their purchases of Russian energy.
The legislation is part of a broader US effort to increase economic pressure on Russia over the war in Ukraine. The bill targets Russia’s energy and defence sectors and also includes measures against its so-called shadow fleet of tankers. It has been sent to President Trump for consideration and would require his approval before becoming law.
India’s Ministry of External Affairs said New Delhi had already discussed the issue with US officials at senior levels in recent months. The ministry said India had clearly communicated its concerns about the possible consequences for both India-US relations and international energy markets. It also said the government would work with trade and industry organisations to assess and respond to the implications of the legislation.
New Delhi has consistently defended its decision to purchase Russian crude, arguing that India needs secure, affordable and reliable energy supplies for its large population and economy. India is the world’s third-largest oil importer and has become one of the largest buyers of Russian oil following Western sanctions imposed on Moscow after Russia’s 2022 invasion of Ukraine.
The proposed measures are also creating concerns among Indian refiners. According to Reuters, Indian refiners have already arranged oil supplies for September and October that include Russian crude. Refining industry sources have called for possible exemptions or transitional arrangements if Washington moves ahead with the proposed tariffs, warning that restrictions on Russian supplies could raise costs at a time when global oil markets are already facing supply pressures.
The issue could also add another complication to ongoing India-US trade negotiations. The two countries have been working toward a broader trade agreement, but differences remain over tariffs, market access and India’s continued energy purchases from Russia. Indian Trade Minister Piyush Goyal is expected to engage with US officials during the upcoming G20 trade ministers’ meeting later this month.
For India, the latest developments highlight the challenge of balancing strategic relations with Washington and its longstanding economic and energy relationship with Moscow. New Delhi has maintained that its energy procurement decisions are guided by national requirements and market conditions, while Washington is seeking to use economic pressure to reduce international purchases of Russian energy.
The proposed US tariff authority therefore has implications beyond the oil trade. If implemented, the measures could affect Indian exporters, refiners and consumers while adding pressure to an already complex bilateral relationship. For now, India has signalled that it will continue to protect its ener