NG Solution Team
Technology

What are India’s options for oil purchases amid US tariffs?

In the wake of the 2022 Ukraine conflict, India turned to discounted Russian oil, making Russia its top supplier, accounting for 35% of its oil imports. However, US President Donald Trump has imposed an additional 25% tariff on Indian goods, citing India’s Russian oil imports as a national security threat. This brings the total tariff to 50%, effective 21 days after the order, with certain exemptions.

India, the world’s third-largest oil importer, relies heavily on imports for over 85% of its needs. In the first half of 2025, India imported about 1.75 million barrels of Russian oil daily. The US tariffs could force India to seek alternatives in the Middle East, Africa, and elsewhere, as its government deems the US targeting as unreasonable, highlighting that Western nations also trade with Russia for various goods.

India has previously imported oil from Iraq and Saudi Arabia and has diversified its sources, including the US and West Africa. Despite US pressure, India insists on protecting its national interests and economic security, maintaining its long-standing relationship with Russia.

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